1. Section 280ZA provides for the issue of tax credit certificates to public companies owning industrial undertakings situated in urban areas if they shift their undertakings to some other areas with the prior approval of the Board.
The obvious purpose for the enactment of section 280ZA is to encourage the dispersal of industries from urban areas.
2. In order to be eligible for the concession envisaged in section 280ZA, the following requirements have to be satisfied by the applicant :
(a) the undertaking proposed to be shifted should be owned by a public company;
(b) the undertaking should be situated in an urban area from where it is to be shifted and which has been notified by the Central Government as such under section 280Y in its Notification No. SO 3419, dated 22-9-1967;
(c) application for the shifting of the industrial undertaking be made to the Board in Form No. 1 appended to the Tax Credit Certificate (Shifting of Industrial Undertakings) Scheme, 1967;
(d) prior approval of the Board before the shifting actually commences, should be obtained; and
(e) the industrial undertaking, by shifting should serve a public purpose.
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