Bombay HC Dismisses Writ Petition Against Retrospective Withdrawal of Industrial Park Tax Benefits

The Bombay High Court has upheld the retrospective withdrawal of tax benefits previously available to industrial parks under Section 80-IA of the Income Tax Act. The court dismissed a batch of petitions challenging this withdrawal, firmly stating that the Parliament possesses the legislative competence to amend tax incentives with retrospective effect. This ruling validates the 2017 amendment, which effectively withdrew these tax benefits for the period commencing from 2014 onwards. The judgment has significant implications for numerous Special Economic Zone (SEZ) developers who had legitimately claimed these deductions based on the prevailing regulations prior to the amendment.