(a) the details of business houses in North Eastern States that have benefited from tax
holiday for setting up industries in that region during the last three years;
(b) whether the benefit accruing from tax holiday is supposed to be reinvested for development
of industries in North Eastern Region; and
(c) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI S.S. PALANIMANICKAM)
(a): No data base is maintained in the CBDT manner in which the information has been sought.
However, some of the top cases claiming deduction u/s 80IB/IC of the Income Tax Act are as in
Annexure-A.
So far as Central Excise is concerned, the details of business houses in North Eastern
States that have benefited from tax holiday for setting up industries in that region during the
last three years are at Annexure-B.
(b): There is no requirement under sections 80IB/IC of the Income-tax Act for compulsory
reinvestment of the benefits accruing from the tax holiday.
Even under the Central Excise Rules, there is no requirement in general for the units to
reinvest the amount of the benefit accrued towards development of industries in the North Eastern
region. However, in terms of erstwhile notification No.8/2004-CE dated 21.01.04, there was a
provision that the Gutka/Zarda units availing exemption were required to invest the amount of
exemption in the infrastructure and social projects within a period of two years from the date of
deposit in escrow account in the North-Eastern region. The said notification has been withdrawn
from 1.03.07.
(c): The details of the amount of tax exemption availed and deposited in escrow account for the
purpose of investment in the year 2006-07 are at Annexure-C.