The Kolkata Bench of Income Tax Appellate Tribunal has held that no deduction of profits and gains from industrial undertakings u/s 80IA(4) without notification issued by the competent authority.
The AO require the appellant, M/s Salarpuria Properties Pvt. Ltd., in the course of scrutiny assessment to furnish the copies of notification issued by CBDT in respect of its claim’s u/s 80IA &80IB of the Act. But the assessee failed to produce the notification in respect of industrial park known as “Salarpuria Touchstone” whereas the notification was duly produced in respect of Salarpuria G.R. Tech Park, Phase-II.The AO came to the conclusion that deduction of Rs. 6,81,07,687/- as claimed u/s 80IA of the Act in respect of “Salarpuria Touchstone” cannot be allowed in absence of the notification of CBDT and consequently the same was rejected. The CIT (A) confirmed the order of AO, hence assessee filed appeal before ITAT.
Mr. Siddharth Jhajhariacounsel for the appellant submitted that the competent authority not notified the Industrial Park despite assessing having applied for the approval of the project and thereafter movingseveral communications to the competent authority following up and requesting for thenotification of the said Industrial Park.
The appellant further submitted that, they also filed a writ petition before the Karnataka High Court seeking the direction to CBDT/competent authority to bring out a notification in respect of Salarpuria Touchstone and the Karnataka High Court was also pleased to give certain directions to competent authority in respect of above Industrial Park butthe competent authority failed to follow the directions of Karnataka High Court, another writ petition was filed by the assessee before the Karnataka High Court seeking necessary directions to the competent authority which is pending for adjudication.
The Coram of Sanjay Garg, Judicial Member and Rajesh Kumar, Accountant Member has held thatthe project has not been notified by the competent authority which was a for grant of deduction u/s 80IA (4) of the Act. Hence, the deduction u/s80IA(4) of the Act of Rs. 6,81,07,687/- in respect of Salarpuria Touchstone park cannot be allowed.
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