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Regarding availing deduction u/s 80 IC of the Inco

1999 views 1 replies

Pranav Anand

13 Points Joined March 2007

:oThis is with regard to the availing of deduction u/s 80 IC of the Income Tax Act, 1961.

One of our group company is about to start an SHP (Small Hydro Project) in Himachal Pradesh for which deduction can be claimed by the company if it is in the specified area of the specified state OR if established in a non-specified area of the specified state it should manufacture the goods specified in the Schedule XIV[Part C].

But since the unit of the company is not situated in the specified area of the specified state and the goods manufactured (Hydro Power) is not specified in the Schedule XIV [Part C], we would like to avail the deduction through the special notification by the CBDT(if any).

So, please guide us in this regard how we should proceed in this matter.

Replies (1)

Gaurav Goyal

Chartered Accountant

20 Points Joined August 2008

An individual sets up a budget Hotel in Dehradun (Uttarakhand) in a building previously used for residential purposes by the individual. The building is ancestral, previously in the name of his father in municipal records, which he got transferred in his name in Jan 2005. Hotel Licence taken in May 2005 and the hotel is started in April 2006 after some renovation to the building. The value of old building is taken in his books through capital introduction which is more than the cost of renovation.

Kindly guide me whether he can avail deduction u/c 80 -IC (schedule fourteenth part C subclass under NIC classification 1998 - 55101)