Section 80-IA(3) — the law in short
What the courts have decided on section 80-IA(3), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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PCIT v Macquarie Global Services Pvt Ltd — s.10AA(4) is unit specific, and the splitting-up objection belongs to the first year
High CourtHelps taxpayerValidity unconfirmed
The Assessing Officer says my client's SEZ unit is a reconstruction of its existing EOU business, and he is raising it in year three after allowing the claim twice. Can he?
The Delhi High Court held that the conditions in s.10AA(4) are unit specific and not assessee specific, so an assessee who already runs an export business — even one that enjoyed s.10A relief — is not disqualified from claiming s.10AA on a genuinely new SEZ unit. It also held, following its own earlier decisions, that the objection under clause (ii) that the undertaking was formed by splitting up or reconstruction relates to the date of formation and must be taken in the first year in which the exemption is claimed, not in a later year. The Revenue's appeal was dismissed with no substantial question of law arising.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.