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Unit 7: Deductions: For Special Conditions

(ii) a highway project including housing or other activities being an integral part of the highway Notes
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.

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 1st April, 1995 but on or before 31st 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.”

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 benefi t
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.

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