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Unit 6: Deductions: For Special Conditions

(ii) a highway project including housing or other activities being an integral part of the Notes
highway project;
(iii) a water supply project, water treatment system, irrigation project, sanitation and
sewerage system or solid waste management system; and
(iv) a port, airport, inland waterway or inland port or navigational channel in the sea.

Notes

1. Structures at the ports for storage, loading and unloading etc. will be included in the
definition of port for the purpose of section 80-IA, if the concerned port authority
has issued a certificate that the said structures form part of the port.
2. Effluent treatment and conveyance system is a part of water treatment system and
would accordingly, qualify as an infrastructure facility for the purpose of section
80-IA.
3. The CBDT has, vide Circular No. 4/2010 dated 18.5.2010, clarified that widening of
an existing road by constructing additional lanes as a part of a highway project by an
undertaking would be regarded as a new infrastructure facility for the purpose of
section 80-IA(4)(i). However, simply relaying of an existing road would not be
classifiable as a new infrastructure facility for this purpose.

(2) Telecommunication undertakings: Any undertaking providing telecommunication
services, whether basic or cellular, including radio paging, domestic satellite service or
network of trunking (NOT), broadband network and internet services on or after 1 April,
1995 but on or before 31 March, 2005.
Meaning of “domestic satellite”: ‘Domestic satellite’ has been defined by sub-section (12)(a) as
“a satellite owned and operated by an Indian company for providing telecommunication
services.”
(3) Industrial parks or Special Economic Zones: Any undertaking which develops, develops
and operates, or maintains and operates an industrial park or develops, or develops and
operates, or maintains and operates, a special economic zone.
Conditions:

(i) The undertaking begins to operate an industrial park or special economic zone in
accordance with the scheme framed and notified by the Central Government.
(ii) The scheme is notified by the Government for the period beginning on 1-4-1997 and
ending on 31-3-2011 for industrial parks and 31.3.2006 for SEZs.
Rule 18C lays down the following eligibility criteria for Industrial Parks to claim
benefit under section 80-IA (4) (iii) -
1. The undertaking should begin to develop, develop and operate or maintain
and operate an industrial park any time during the period from 1.4.2006 to
31.3.2009.
2. The undertaking and the Industrial Park should be notified by the Central
Government under the Industrial Park Scheme, 2008.
3. The undertaking should continue to fulfil the conditions envisaged in the
Industrial Park Scheme, 2008.

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