SILVER LAND DEVELOPERS PVT LTD Vs. EMPOWERED COMMITTEE

JUDGEMENT

(1.) An order has been passed by the Empowered Committee on 21 February 2011 holding that the Petitioners are not entitled to the benefit of the Industrial Park Scheme 2002. The Scheme has been notified by the Central Government in exercise of powers conferred by clause (iii) of Sub-section (4) of Section 80IA of the Income Tax Act, 1961. The Petitioners in these proceedings under Article 226 of the Constitution question the legality of the order of the Empowered Committee.

(2.) Sub-section (1) of Section 80IA provides that where the gross total income of an assessee includes profits and gains derived by an undertaking or an enterprise from a business referred to in sub-section (4), the assessee would be allowed, in accordance with the provisions, in computing the total income, a deduction of an amount equal to hundred per cent of the profits and gains derived from such business for ten consecutive assessment years. Under sub-section (2) the assessee has an option to claim the deduction for any ten consecutive assessment years out of fifteen years beginning from the year in which the undertaking or the enterprise develops an industrial park. Sub-section (4) of Section 80IA contains a description of the undertakings or enterprises to which the provision applies. Clause (iii) of sub-section (4) as it stood during the material period to which the controversy relates was to the following effect :

(3.) Under Section 80IA(4)(iii) the Central Government was empowered to notify a scheme. The Central Government has notified schemes from time to time. The Scheme to which the present dispute relates is notified on 1 April 2002 and is called the Industrial Park Scheme, 2002. Para 3 of the Scheme provides for the period of operation and is to the following effect :