INCOME TAX ACT, 1961

Section 80-IAB

Deduction under section 80-IAB - Allowability - Profit on transfer of bare shee to co-developer -

Assessee claimed deduction under section 80-IAB on the basis of agreement entered into between assessee and its co-developer, M/s. DAPL with regard to IT Park, developed by M/s. DAPL. AO denied deduction on the premise that claim of deduction was actually a profit accruing to assessee from sale of bare shell building to the co-developer, M/s. DAPL, which was not an authorized operation under SEZ Act and as such, not eligible under section 80-IAB. Held: In view of the fact that year under consideration was third year of claiming deduction, it was proved that assessee was a developer under the SEZ Act and consequently, on the basis of approval given by Board of Approvals for transfer of bare shell to the co-developer profit arising to assessee from authorized transactions was eligible for deduction under section 80-IAB.

REFERRED : Apollo Tyres v. CIT (2002) 9 SCC 1 : 2002 TaxPub(DT) 1371 (SC).

FAVOUR : In assessee's favour.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 14

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