Candor Gurgaon Two Developers And Projects Pvt. Ltd Vs CIT (ITAT Delhi)
ITAT Delhi held that that car parking cannot be separated from the main business of SEZ, hence deduction under section 80IAB of the Income Tax Act duly available on income from car parking rental.
Facts- The assessee is in the business of developing SEZ in IT/ITES Sector and lease-out the premises for rent and maintaining the said SEZ. The assessee contested that AO denied deduction under Section 80-IAB of the Income Tax Act on income from car parking rentals alleging that it did not have direct nexus with the business carried on by the assessee.
Conclusion- An instruction No.50 dated 15th March, 2010 issued by Government of India, Ministry of Commerce and Industry, Department of Commerce was adverted and was submitted that income by way of car parking is part of authorized activities as per the guidelines. Another reference was made to communication No. F 2/115/2005-EPZ Government of India, Ministry of Commerce and Industry, Department of Commerce (SEZ Section) dated 30th January, 2008 and was asserted that car parking has been included as part of authorized operations in SEZ. It is thus contended that car parking cannot be separated from the main business of SEZ and hence there is no justifiable reason to deny benefits on income from car parking rental in this backdrop.
Held that in the light of express guidelines issued by the Government as referred to and relied upon, we are of the view that the income from car parking rental would squarely qualify for deduction under Section 80IAB of the Act.
FULL TEXT OF THE ORDER OF ITAT DELHI
The assessee is in appeal challenging the following orders of ld. Tax Authorites Below :-
