Availability of benefit under section 80-IA in respect of infrastructure facilities notified by CBDT prior to 31-3-2001 - Income Tax - 07/2002

Availability of benefit under section 80-IA in respect of infrastructure facilities notified by CBDT prior to 31-3-2001 Circular : No. 7/2002, dated 26-8-2002 . 1. Infrastructure facility as defined in Explanation to sub-clause (c) of clause (i) of sub-section (4) of section 80-IA of the Income-tax Act, 1961, as it stood prior to its substitution by the Finance Act, 2001, meant : (i) a road, bridge, airport, inland waterways and inland ports, rail system or any other public facility of a similar nature as may be notified by the Board in this behalf in the Official Gazette; (ii) a highway project including housing or other activities being an integral part of the highway project; and (iii) a water supply, water management system, irrigation project, sanitation and sewerage system or solid waste management system. 2. The Finance Act, 2001 has further rationalised the above definition. The definition of Infrastructure facility, as given in the Explanation introduced with effect from 1-4-2002 excludes any other public facility of a similar nature as may be notified by the Board in this behalf in the Official Gazette. Under the earlier provisions, several public facilities have already been notified by the Board as infrastructure facilities. In this connection, a need has been felt to clarify doubts as to whether such notified infrastructure facilities would continue to be eligible for such benefit on or after 1-4-2002. It is, hereby clarified that : Such projects, for which agreements have been entered into on or after 1-4-1995 but on or before 31-3-2001 and which have been notified by the Board on or before 31-3-2001, would continue to be exempt, subject to the fulfilment of the conditions prescribed in section 80-IA(4)(i)(b), as it existed prior to its substitution by the Finance Act, 2001. Circular : No. 7/2002, dated 26-8-2002.