Income earned from operation and maintenance of SEZ is eligible for deduction u/s 80IAB: ITAT

THE ISSUE IS - Whether income earned from operation and maintenance of SEZ is eligible for deduction u/s 80IAB of Act. YES IS THE VERDICT.

Facts of the case

The assessee company, was developer of Special Economic Zone and had filed return for relevant AY, claiming deduction u/s 80IAB of Act, which included profit on business of operation and maintenance of (SEZ) amounting to Rs. 1,94,12,129/-. During assessment, the AO held that income derived from "operation and maintenance" activity of (SEZ) was not eligible for deduction u/s 80IAB of the Act. The AO accordingly denied deduction claimed amounting to Rs. 1,94,12,129/- attributable to operation and maintenance activities. On appeal, CIT(A) reverse the action of the AO. Aggrieved, the Revenue filed appeal before the Tribunal.

Tribunal held that,

++ the Co-ordinate bench of Tribunal in Revenue's appeal relevant assessment year 2010-11 has dismissed the appeal of the Revenue and thus allowed the deduction claimed on operation and maintenance activity. While doing so Coordinate bench in turn relied upon the decision of the Co-ordinate bench of Tribunal in assessee's own case relevant AY 2009-10. In parity with the view taken by the Co-ordinate bench in assessee's own case in the preceding assessment years, it was decided not to interfere with the order of the CIT(A). In the result, appeal of the Revenue is dismissed.