Word State in sub-section (4) of section 80-IB includes Union Territories specified in Eighth Schedule - Income Tax - 788/2000

Section 80-IB - Profits and gains from certain industrial undertakings other than infrastructure development undertakings Word State in sub-section (4) of section 80-IB includes Union Territories specified in Eighth Schedule Circular: No. 788, dated 11-4-2000 . 1. Sub-section (4) of section 80-IB of the Income-tax Act, 1961 provides for deduction in the case of an industrial undertaking in an industrially backward State specified in the Eighth Schedule of the Income-tax Act, 1961. The Eighth Schedule lists industrially backward States and UnionTerritories. 2. It has come to the notice of the Board that some of the field authorities are taking a restrictive view in interpreting section 80-IB(4) and are not allowing the benefit of the said section in respect of industrial undertakings situated in Union Territories specified in the Eighth Schedule in view of the fact that the said sub-section (4) mentions the word State only. 3. The matter has been considered by the Board and it is clarified that the word State in sub-section (4) of section 80-IB of the Income-tax Act, 1961 includes the Union Territories specified in the Eighth Schedule of the Income-tax Act, 1961. Circular: No. 788, dated 11-4-2000.