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TMI Blog2025 (1) TMI 1341X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to claim deduction u/s. 80IA(4)(iii) of the Act. Even on the merits of the case, it is pertinent that the Industrial Park Scheme, 2002, notified by the GOI in exercise of powers u/s. 80IA(4)(iii) of the Act facilitates projects for setting up industrial parks which are eligible for claiming deduction u/s. 80IA(4)(iii) of the Act. There is no iota of doubt that the assessee was entitled to get benefit under this provision, for the reason that the assessment order does not speak of any violation in the conditions specified in the scheme, though, the revenue has raised a specific ground of appeal that the minimum 30 industrial units requisite for claiming deduction has not been satisfied. The assessment order nowhere has specified that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me arising from 'house property' and not a 'business income'. The revenue has also challenged the order on the ground that the assessee has not satisfied the conditions for claiming the deduction u/s. 80IA(4)(iii) of the Act that there should be minimum 30 industrial units set up by the assessee for the purpose of claiming the said deduction. 4. Briefly stated that the assessee's nature of business is real estate development, operation and maintenance of industrial parks, non-industrial parks and other commercial segments and treasury. The assessee had filed its return of income dated 29.10.2018 for the year under consideration, declaring total income at Rs. 86,27,00,340/- out of income earned from license fees, maintenance services, inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y. 2011-12 in ITA No. 691/Hyd/2016, order dated 06.05.2021, in Section 263 proceedings has held that the assessee cannot be denied deduction u/s. 80IA(4)(iii) of the Act in subsequent years, when the same has been allowed in assessee's case for previous years. 7. The revenue is in appeal before us, challenging the impugned order of the ld. CIT(A) for all these years. 8. The learned Departmental Representative ('ld. DR' for short) for the revenue contended that the deduction claimed u/s. 80IA(4)(iii) of the Act was disallowed by the ld. AO in A.Y. 2010-11 in ITA No. 1774/Hyd/2014 and ITA No. 727/Hyd/2015 dated 11.07.2016 holding the same to be 'income from house property' which was subsequently quashed by the Tribunal in the revisionary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ' or 'business income'. For this, it is necessary to consider the nature of the business of the assessee which is deriving income from the operation and management of the buildings out of rent from lease of rental space and rent from lease of furniture and fit-out and facility management charges towards maintenance and upkeep of the premises that is rented out. Pursuant to the notice u/s. 153A of the Act, the assessee filed its return of income declaring the same as profit and gains out of business or profession. The revenue has taken a contrary view that the same is 'income from house property'. The assessee has relied on the CBDT circular no. 16/2017 dated 25.04.2017 which has clarified that the income from letting out of premises/develop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2016 again in a revisionary proceeding the Tribunal held that even if the assessee has assessed the income as income from house property', the assessee was eligible for claiming deduction u/s. 80IA(4)(iii) of the Act as 'business income', for the reason that the assessee was merely engaged in developing and maintaining infrastructural facilities which arose out of a project approved by the Government of India as an eligible project for claiming deduction u/s. 80IA(4)(iii) of the Act. Further, it held that as long as the approval given by the Central Government exist and has not been withdrawn the assessee would be entitled to deduction u/s. 80IA(4)(iii) of the Act. It further held that when deduction has been allowed in the earlier years, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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