Section 80IB

Deduction Under Section 80IA/80IB – Case Laws – Assessment

Income Tax - Deduction in respect of profits and gains from certain industrial undertakings - Sections 80IA/80IB.The phrase “Derived from” has been a very contentious issue while applying the provisions of Sections 80IA and 80IB of the Act and other similar provisions contain same phrase. The issue revolves around the contention whether deduction ...

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How To Avail Of Maximum Benefit U/S 80-IB(10) of Income Tax Act

Income Tax - Recently, I was approached by a Builder Group seeking a number of clarifications, in respect of the incentive granted U/S 80-IB(10) of the Income-Tax Act to Undertakings engaged in the development and construction of Housing Project(s). Apparently, the provisions of S.80-IB(10) look quite simple, but when one goes into the various conditi...

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Benefits U/S 80-IA (4)(iii) Of I.T. Act, In Respect of an Industrial Park

Income Tax - Section 80-IA of the I.T. Act, 1961, grants deductions in respect of profits and gains from Industrial Undertaking or enterprises engaged in Infrastructure Development, etc. As per section 80-IA (1), where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any business refe...

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Leased Assets qualify for Industrial Undertaking Purposes- holds Bombay HC

Income Tax - Whether the film production companies are Industrial Undertaking for the purpose of Section 80IB of the Income Tax Act, 1961? Whether a film production company can be considered as Industrial Undertaking under the provision of Section 80 IB of the Income tax Act, when the plant or machinery of such company is not owned by the assessee and...

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I-T Dept releases Book on Controversies in Income Tax Assessment

Income Tax - The genesis of this book is an exercise carried out to compile best quality assessment orders passed in each Chief C.I.T region of Gujarat during the Financial Year 2011-12. On analyzing these orders it emerged that majority of additions were relatable to issues pertaining to 19 topics. Therefore it was decided to constitute  an expert [...

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CBDT have well-established mechanism to deal with Audit Objections

Income Tax - The office of the Comptroller & Auditor General (C & AG) conducts compliance as well as performance audit relating to specific area of work of the Department. Such an audit on the ssue relating to “Allowance of deduction to the assessees engaged in Infrastructure Development” was conducted by the C & AG in the year 2015 and the report...

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No established mechanism to assess revenue foregone on account of deduction U/s. 80 IA

Income Tax - The CBDT did not have any established mechanism to assess the impact of revenue foregone on account of deduction under section 80 IA on the economic and industrial growth of the country. ...

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Budget 2011-12- Give tax sops on affordable housing

Income Tax - Industry chamber Assocham today asked the government to re-introduce the tax exemption scheme to promote affordable housing in the forthcoming Budget for 2011-12. The chamber also said real estate sector should be accorded infrastructure industry sta...

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Study of recent amendment in deduction for developing and building housing projects – S. 80-IB

Income Tax - Section 80-IB (10) of the Act is aimed at promoting construction of housing projects, so as to address the problem of shortage of dwelling units. The predominant objective of this incentive provision, therefore, is to encourage better availability of the dwelling units for low and middle class segment of the society....

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Hospitality sector want tax holiday to extended to 10 years

Income Tax - Sushanto Roy, CEO, Sahara Prime City, has in a pre-Budget wish list of expectations said: "Given the pent-up demand for affordable housing which was discovered during the recent slowdown there is a need to reintroduce tax holiday under section 80IB for housing projects constructed after March 31, 2008." Tax holiday for hotels, under secti...

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Section 80 IB/IC deduction allowable on manufacturing of boxes intrinsically connected with manufacturing of electric meters

Pr. CIT Vs M/s Secure Meters Ltd. (Rajasthan High Court at Jodhpur) - Pr. CIT Vs M/s Secure Meters Ltd. (Rajasthan High Court) As far as the question relating to trading profit is concerned, the record shows that the assessee derived this income from the sale of boxes manufactured by it to house electric meters. It is not disputed that the deduction under section 80 I...

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Section 80IB deduction cannot be allowed if not claimed by assessee in return filed by him

EBR Enterprises & Anr. Vs Union of India and Anr. (Bombay High Court) - EBR Enterprises Vs Union of India (Bombay High Court) Sub Section (5) of Section 80A of the Act mandates is that, if the assessee fails to make a claim in his return of income for any deduction under the provisions specified therein, the same would not be granted to the assessee. This condition or r...

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Section 80IB(10) deduction cannot be denied for delay by Competent authority in issue of completion certificate

Pr. CIT Vs  Dharti Enterprises (Bombay High Court) - Where building/developing project was completed within the time framed provided under section 80-IB(10) and an application for issuance of completion certificate was filed within time, then delay on account of the competent authority in issuing completion certificate would not deprive the assessee, ...

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Reassessment after 4 years where assessee made true and full disclosure in original assessment was not valid

DCIT Vs Visvas Promoters (P) Ltd. (Madras High Court) - Reassessment after period of four years on the ground that assessee had claimed excess deduction under Section 80IB(10) was not valid where assessee had made true and full disclosure and had consciously made only a proportionate claim under Section 80IB(10), which was rightly allowed by AO at the ti...

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Deduction U/s. 80-IB(10) allowable to both owner & land developer

ITO Vs Ms. Skyline Developers (ITAT Pune) - Assessee who had contributed land and  engaged in the development of housing project with developer for development of the land was eligible for claiming deduction under section 80-IB(10) as both owner as well as developer were eligible for deduction under section 80-IB(10)....

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Deduction U/s 80IB, 80IC eligible on Transport, Power & Interest subsidies

Circulars No. 39/2016 - (29/11/2016) - It is a settled position that revenue subsidies received from the Government towards reimbursement of cost of production/manufacture or for sale of the manufactured goods are part of profits and gains of business derived from the Industrial Undertaking/ eligible business, and are thus, admissible fo...

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Section 80-IB of the Income-tax Act, 1961 – Corrigendum to Notification No. S.O. 1898(E), dated 3-8-2010

Notification No. 2/2011 - Income Tax - (05/01/2011) - Notification No. 2/2011 - Income Tax In the notification of the Government of India in the Ministry of Finance, Department of Revenue, (Central Board of Direct Taxes) number S.O. 1898(E), dated the 3rd August, 2010, published in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (...

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Section 80-IB – Scheme for slum redevelopment prepared by Maharashtra Government

Notification No. 01/2011- Income Tax - (05/01/2011) - Notification No. 01/2011- Income Tax In exercise of the powers conferred by clauses (a) and (b) of sub-section (10) of section 80-IB of the Income-tax Act, 1961 (43 of 1961), the Board hereby notifies, the Scheme for slum redevelopment prepared by the Maharashtra Government under sub-section (2) of ...

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Notification No. 67/2010- Notified scheme for purposes of section 80-IB(10)

Notification No. 67/2010 - Income Tax - (03/08/2010) - Notification No. 67/2010 - Income Tax In exercise of the powers conferred by the proviso to Clause (a) and (b) of sub-section (10) of section 80-IB of the Income-tax Act, 1961 (43 of 1961), the Board hereby notifies the Scheme contained in Regulations 33(10) of Development Control Regulation for Gre...

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Clarification regarding deduction under section 80-IB(10) in respect of undertakings developing building and housing projects

Instruction No. 4/2009 - (30/06/2009) - Instruction No. 4/2009, dated 30-6-2009 Under sub-section (10) of section 80-IB an undertaking developing and building housing projects is allowed a deduction of 100% of its profits derived from such projects if it commenced the project on or after 1.10.1998 and completes the construction within fou...

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Recent Posts in "Section 80IB"

Section 80 IB/IC deduction allowable on manufacturing of boxes intrinsically connected with manufacturing of electric meters

Pr. CIT Vs M/s Secure Meters Ltd. (Rajasthan High Court at Jodhpur)

Pr. CIT Vs M/s Secure Meters Ltd. (Rajasthan High Court) As far as the question relating to trading profit is concerned, the record shows that the assessee derived this income from the sale of boxes manufactured by it to house electric meters. It is not disputed that the deduction under section 80 IB/IC was for […]...

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Section 80IB deduction cannot be allowed if not claimed by assessee in return filed by him

EBR Enterprises & Anr. Vs Union of India and Anr. (Bombay High Court)

EBR Enterprises Vs Union of India (Bombay High Court) Sub Section (5) of Section 80A of the Act mandates is that, if the assessee fails to make a claim in his return of income for any deduction under the provisions specified therein, the same would not be granted to the assessee. This condition or restriction […]...

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Section 80IB(10) deduction cannot be denied for delay by Competent authority in issue of completion certificate

Pr. CIT Vs  Dharti Enterprises (Bombay High Court)

Where building/developing project was completed within the time framed provided under section 80-IB(10) and an application for issuance of completion certificate was filed within time, then delay on account of the competent authority in issuing completion certificate would not deprive the assessee, the benefit of section 80-IB(10)....

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Reassessment after 4 years where assessee made true and full disclosure in original assessment was not valid

DCIT Vs Visvas Promoters (P) Ltd. (Madras High Court)

Reassessment after period of four years on the ground that assessee had claimed excess deduction under Section 80IB(10) was not valid where assessee had made true and full disclosure and had consciously made only a proportionate claim under Section 80IB(10), which was rightly allowed by AO at the time of original assessment proceedings un...

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Deduction U/s. 80-IB(10) allowable to both owner & land developer

ITO Vs Ms. Skyline Developers (ITAT Pune)

Assessee who had contributed land and  engaged in the development of housing project with developer for development of the land was eligible for claiming deduction under section 80-IB(10) as both owner as well as developer were eligible for deduction under section 80-IB(10)....

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Deduction U/s. 80-IB(10) eligible on unaccounted receipts 

Pr. CIT Vs Green Associates (Gujarat High Court)

There is nothing on the record to suggest that the assessee had other businesses or that the undisclosed receipts were assessee’s profit out of any other activity other than development of housing project, The Tribunal came to the specific conclusion that the unrecorded consideration was also part of the assessee’s sale transaction of...

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Dehusking of Paddy to obtain Rice is ‘Manufacture’ for sec 80IA/IB deduction

CIT Vs M/s. Muthuramalingam Modern Rice Mill (Madras High Court)

CIT Vs M/s. Muthuramalingam Modern Rice Mill (Madras High Court) Conclusion: Conversion of Paddy into Rice by the process of de-husking would amount to “maufacture” as not only the form underwent a change but also the value addition happened by such process as a different commercial article came into being and therefore, asses...

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Section 80IB(10) deduction cannot be denied merely because land was held by original owner during project execution

PCIT Vs Green Associates (Gujarat High Court)

Where assessee had claimed deduction under section 80-IB in respect to income of housing development project, the same could not be rejected merely because the land was held by original owner when the housing development project was executed, would not be detrimental to assessee’s claim of deduction under section 80-IB(10)....

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Deduction U/s. 80IB(10) cannot be denied merely because Assessee developer being not the owner of land

Pr. CIT Vs Green Associates (Gujarat High Court)

Pr. CIT Vs Green Associates (Gujarat High Court) Assessee had claimed deduction in respect to the income arising out of such activity under section 80IB (10) of the Income Tax Act. The Assessing Officer disallowed the claim mainly on the ground that the assessee was not the owner of the land and the approval of […]...

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Deduction U/s 80IB not allowable on lease rent of industrial undertaking

Navas M. Meeran Vs ACIT (ITAT Cochin)

Navas M. Meeran Vs ACIT (ITAT Cochin) Conclusion: Lease rent received by assessee by letting out the industrial undertaking was not having any direct connection with the manufacture or production of an article or thing by assessee and the same could not be considered as business income eligible for deduction u/s. 80IB. Held: Assessee had ...

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