Case Law Details
DCIT Vs Olympia Tech Park (Chennai) Private Limited (ITAT Mumbai)
ITAT Mumbai held that in case of transfer of undertaking deduction u/s. 80IA(4) of the Income Tax Act for remaining unexpired period duly admissible to transferee when transferor and transferee should jointly intimate to the Department of Industrial Policy and Promotion.
Facts- The assessee M/s. Khivraj Tech Park is a partnership firm. The case was selected for scrutiny and during the course of assessment proceedings, AO called upon the assessee to furnish necessary evidences to justify deduction claimed u/s. 80IA(4)(iii) of the Act. Notably, the partnership firm has been subsequently converted into a company under the name and style of ‘M/s. Olympia Tech Park (Chennai) Private Limited’ under Part IX of Companies Act, 1956. Since, the Industrial park was approved by the Ministry of Commerce, Government of India, under the Industrial Park Scheme, 2002, on transfer to the successor company, the successor company can claim deduction u/s. 80IA(4)(iii) of the Act, for remaining period and accordingly, the assessee has claimed deduction u/s. 80IA(4)(iii) of the Act.
AO was not convinced with the explanation of the assessee and according to the Assessing Officer, the assessee is not entitled for deduction u/s. 80IA(4) of the Act, because the new undertaking which is taking up operation and maintenance of industrial park is not approved under Industrial Park Scheme, 2002 & Industrial Park Scheme, 2008.
CIT(A) came to conclusion that, the claim of deduction u/s. 80IA(4) is in accordance with said provisions. Being aggrieved, revenue has preferred the present appeal.
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