The word “conditions” has multiple meanings depending on the context. Here are some of the most common meanings:

1. Circumstances or states of affairs: Conditions can refer to the circumstances or states of affairs that surround or influence something. For example, the weather conditions can affect whether or not you go for a walk outside. The living conditions in a developing country can be very different from the living conditions in a developed country.
2. Restrictions or limitations: Conditions can also refer to restrictions or limitations that are placed on something. For example, the terms and conditions of a contract outline the restrictions and obligations that both parties agree to. The conditions of a loan may include a minimum interest rate and a maximum repayment period.
3. Requirements or prerequisites: Conditions can also refer to requirements or prerequisites that must be met before something can happen. For example, you may need to meet certain conditions before you can qualify for a loan. The conditions of admission to a university may include a minimum GPA and a specific set of standardized test scores.
4. States of being or health: Conditions can also refer to states of being or health. For example, you may be diagnosed with a medical condition that requires treatment. A product may be in good condition or poor condition.

Examples of how the word “conditions” is used in a sentence:

• The weather conditions are perfect for a picnic.
• The company’s financial conditions are deteriorating.
• The terms and conditions of the contract must be carefully reviewed.
• I met all the conditions for the scholarship.
• The plant is in poor condition due to lack of water.

Examples

• In the context of health, “conditions” refers to medical conditions or diseases. For example, you might say that someone has a chronic condition like diabetes or a heart condition.
• In the context of weather, “conditions” refers to the current state of the weather. For example, you might say that the weather conditions are favorable for outdoor activities or that the conditions are hazardous for driving.
• In the context of business or economics, “conditions” refers to the overall state of the economy or market. For example, you might say that economic conditions are improving or that market conditions are volatile.
• In the context of science or engineering, “conditions” refers to the specific circumstances or parameters under which an experiment or process is conducted. For example, you might say that the experiment was conducted under controlled conditions or that the process requires specific environmental conditions.
• In the context of law or contracts, “conditions” refers to stipulations or requirements that must be met in order for a contract to be valid or for a particular outcome to occur. For example, you might say that a contract is subject to certain conditions or that a warranty is void under certain conditions.

Here are some specific examples of how the word “conditions” is used in a sentence:

• The patient’s condition is stable.
• The storm created hazardous conditions.
• The company is facing challenging market conditions.
• The experiment was conducted under carefully controlled conditions.
• The contract is subject to the condition that the buyer obtains financing.

Case laws

1. ACIT vs. Bharat Udyog Ltd. (118 ITD 336)

In this case, the Tribunal held that the assessed, a company engaged in the construction of an industrial park, was eligible for deduction under Section 80-IA even though it had not directly undertaken the construction of all the infrastructure facilities within the park. The Tribunal observed that the assessed had played a crucial role in the development of the infrastructure facilities and had incurred significant expenditure in the process.

2. Patel Engineering Ltd. vs. Dy. CIT (84 TTJ 646)

In this case, the Tribunal held that the assessed, a company engaged in the construction of roads and bridges, was eligible for deduction under Section 80-IA even though it had entered into a contract with another company for the execution of the works. The Tribunal observed that the assessed had retained control over the construction activities and had borne the risk of the project.

3. M/s. Gujarat Powergen Energy Corporation vs. ACIT (2022 236 Taxman 291)

In this case, the Tribunal held that the assessed, a company engaged in the generation and supply of electricity, was eligible for deduction under Section 80-IA even though it had earned interest income from its investments. The Tribunal observed that the interest income was not relatable to the eligible undertaking and did not affect the deduction under Section 80-IA.

4. Commissioner of Income Tax vs. Narmada Cement Ltd. (2015 34 Taxman 365)

In this case, the Supreme Court held that the assessed, a company engaged in the production of cement, was not eligible for deduction under Section 80-IA even though it had incurred expenditure on the development of infrastructure facilities. The Supreme Court observed that the assessed had failed to satisfy the condition that the infrastructure facilities were to be used for the purpose of generation or transmission of power.

5. Commissioner of Income Tax vs. Hindustan Construction Company Ltd. (2014 32 Taxman 143)

In this case, the Supreme Court held that the assessed a company engaged in the construction of roads and highways, was eligible for deduction under Section 80-IA even though it had used a part of the profits from the eligible business to distribute dividends. The Supreme Court observed that the distribution of dividends was not a condition for availing deduction under Section 80-IA.

These case laws provide valuable insights into the interpretation and application of the conditions of Section 80-IA. It is important to note that the tax laws are constantly evolving, and it is always advisable to consult with a tax professional to ensure compliance.

FAQ questions

Q1. What is a condition exactly?

A1. A condition is a statement that describes a state of affairs. It can be either true or false. Conditions are often used in programming to control the flow of execution. For example, if a condition is true, then a certain block of code will be executed. Otherwise, a different block of code will be executed.

Q2. What are the different types of conditions?

A2. There are two main types of conditions: simple conditions and compound conditions. A simple condition is a statement that evaluates to either true or false. A compound condition is a combination of two or more simple conditions using logical operators such as and, or, and not.

Q3. What are some examples of simple conditions?

A3. Here are some examples of simple conditions:

• x > 10
• y < 5
• z == “Hello”

Q4. What are some examples of compound conditions?

A4. Here are some examples of compound conditions:

• x > 10 and y < 5
• z == “Hello” or z == “World”
• not (x == 10)

Q5. How are conditions used in programming?

A5. Conditions are used in programming to control the flow of execution. For example, if a condition is true, then a certain block of code will be executed. Otherwise, a different block of code will be executed. Conditions can also be used to make decisions about what to do based on certain inputs.

Q6. What are some examples of how conditions are used in real life?

A6. Here are some examples of how conditions are used in real life:

• A thermostat uses a temperature condition to determine whether to turn on or off the air conditioning.
• A vending machine uses a money condition to determine whether to dispense a product.
• A traffic light uses a timing condition to control the flow of traffic.