TEXT OF NEW NOTIFICATIONS SPECIFYING CATEGORY A AND CATEGORY B OF INDUSTRIALLY BACKWARD DISTRICTS

In exercise of powers conferred by section 80-IA of the Income-tax Act, 1961 (43 of 1961), as amended by section 3 of the Income-tax (Amendment) Ordinance, 1997 (15 of 1997) and in supersession of the Notification of Government of India, Ministry of Finance, Department of Revenue (Central Board Direct Taxes) number 636(E), dated 3-9-1997] [Notification No.10404 (F.No.142/20/94-TPL (PT-III), dated 3-9-1997][except as respects things done or omitted to be done before such supersession, the Central Government specifies the following districts as industrially backward districts of Category A and Category B under sub-clause (c) of clause (iv) of sub-section (2) of section 80-IA read with rule 11EA of the Income-tax Rules, 1962, namely:-

 

A. CATEGORY A INDUSTRIALLY BACKWARD DISTRICTS:

1.

Godda

Bihar

2.

Gumla

Bihar

3.

Araria

Bihar

4.

Gadchiroli

Maharashtra

5.

Madhepura

Bihar

6.

Sidharthanagar

Uttar Pradesh

7.

Dumka

Bihar

8.

Mandla

Madhya Pradesh

9.

Khagaria

Bihar

10.

Kishanganj

Bihar

11.

Malda

West Bengal

12.

Palamau

Bihar

13.

Phulbani

Orissa

14.

Madhubani

Bihar

15.

Kalahandi

Orissa

16.

Jehanabad

Bihar

17.

Saharsa

Bihar

18.

West Dinajpur

West Bengal

19.

Nawadah

Bihar

20.

Bahraich

Uttar Pradesh

21.

Sitamarhi

Bihar

22.

Sahebganj

Bihar

23.

Murshidabad

West Bengal

24.

Cooch Behar

West Bengal

25.

Bankura

West Bengal

26.

Panna

Madhya Pradesh

27.

Pratapgarh

Uttar Pradesh

28.

Maharajganj

Uttar Pradesh

29.

Jalore

Rajasthan

30.

Aurangabad

Bihar

31.

East Champaran

Bihar

32.

Banda

Uttar Pradesh

33.

Barmer

Rajasthan

34.

Purnia

Bihar

35.

Bastar

Madhya Pradesh

36.

Siwan

Bihar

37.

Vaishali

Bihar

38.

Basti

Uttar Pradesh

39.

Sarguja

Madhya Pradesh

40.

Chamoli

Uttar Pradesh

41.

Jaisalmer

Rajasthan

42.

Lohardagga

Bihar

43.

Chhatarpur

Madhya Pradesh

44.

Uttarkashi

Uttar Pradesh

45.

Churu

Rajasthan

46.

Wayanad

Kerala

47.

Idukki

Kerala

48.

Jalpaiguri

West Bengal

49.

Almora

Uttar Pradesh

50.

Pithoragarh

Uttar Pradesh

51.

Tehri Garhwal

Uttar Pradesh

52.

The Dangs

Gujarat

53.

Banswara

Rajasthan

 

B. CATEGORY B INDUSTRIALLY BACKWARD DISTRICTS:

1.

Srikakulam

Andhra Pradesh

2.

Mahbubnagar

Andhra Pradesh

3.

Katiyar

Bihar

4.

Bhagalpur

Bihar

5.

Gopalganj

Bihar

6.

Darbhanga

Bihar

7.

West Champaran

Bihar

8.

Saran

Bihar

9.

Bhojpur

Bihar

10.

Samastipur

Bihar

11.

Deoghar

Bihar

12.

Nalanda

Bihar

13.

Gaya

Bihar

14.

Muzaffarpur

Bihar

15.

Rohtas

Bihar

16.

Bankaskantha

Gujarat

17.

Sabarkantha

Gujarat

18.

Bidar

Karnataka

19.

Seoni

Madhya Pradesh

20.

Tikamgarh

Madhya Pradesh

21.

Shivpuri

Madhya Pradesh

22.

Balaghat

Madhya Pradesh

23.

Jhabua

Madhya Pradesh

24.

Sidhi

Madhya Pradesh

25.

Vidisha

Madhya Pradesh

26.

Raigarh

Madhya Pradesh

27.

Morena

Madhya Pradesh

28.

Betul

Madhya Pradesh

29.

Rajgarh

Madhya Pradesh

30.

Rajnandgaon

Madhya Pradesh

31.

Sagar

Madhya Pradesh

32.

Beed

Maharashtra

33.

Bolangir

Orissa

34.

Mayurbhanj

Orissa

35.

Balasore

Orissa

36.

Ganjam

Orissa

37.

Dungarpur

Rajasthan

38.

Dholpur

Rajasthan

39.

Sawai Madhopur

Rajasthan

40.

Tonk

Rajasthan

41.

Nagaur

Rajasthan

42.

Jhalawar

Rajasthan

43.

Sikar

Rajasthan

44.

Hardoi

Uttar Pradesh

45.

Lalitpur

Uttar Pradesh

46.

Hamirpur

Uttar Pradesh

47.

Badaun

Uttar Pradesh

48.

Fatehpur

Uttar Pradesh

49.

Azamgargh

Uttar Pradesh

50.

Etah

Uttar Pradesh

51.

Barabanki

Uttar Pradesh

52.

Etawah

Uttar Pradesh

53.

Deoria

Uttar Pradesh

54.

Ghazipur

Uttar Pradesh

55.

Ballia

Uttar Pradesh

56.

Jaunpur

Uttar Pradesh

57.

Sitapur

Uttar Pradesh

58.

Jalaun

Uttar Pradesh

59.

Unnao

Uttar Pradesh

60.

Faizabad

Uttar Pradesh

61.

Kanpur Dehat

Uttar Pradesh

62.

Mainpuri

Uttar Pradesh

63.

Gonda

Uttar Pradesh

64.

Farukhabad

Uttar Pradesh

65.

Sultanpur

Uttar Pradesh

66.

Mirzapur

Uttar Pradesh

67.

Mau

Uttar Pradesh

68.

Purulia

West Bengal

69.

Birbhum

West Bengal

70.

Midnapore

West Bengal

Explanation: For the purpose of this notification, the districts correspond to the districts mentioned in the Report of the Study Group on identification of Backward Districts dated 4th October, 1994 and are based on districts as they stood in the Census Report of 1991. Where a district specified as an industrially backward district for the purposes of section 80-IA is reorganized, either by split or otherwise, after the Census Report of 1991, all the areas comprised in the district as it existed in the Census Report of 1991 will qualify for the purpose of this rule.

2. This notification shall be deemed to have come into force with effect form the 1st day of October, 1994.

EXPLANATORY MEMORANDUM

The Central Government had set up a Study Group to identify industrially backward districts for the purposes of section 80-IA of the Income-tax Act, 1961. The Group submitted its Report to the Central Government in the month of October 1994. The Central Government constituted another Study Group to review the said Report. On the basis of the reports of both the Study Groups, the Central Government decided that the industrially backward districts should be classified into two categories, i.e. Category A and Category B. Section 80-IA was amended by the Income-tax (Amendment) Ordinance, 1997) so as to classify the industrially backward districts of Category A and industrially backward districts of Category B. The Said Ordinance has come into force on the 16th September, 1997. Rule 11EA of the Income-tax Rules, 1962 has also been amended retrospectively with effect from 1-10-1994 so as to give effect to the amendment made in section 80-IA of the Income-tax Act by the said Ordinance. It is certified that the retrospective operation of this amendment shall not prejudicially affect the interest of assesses.

SOURCE: Notification No. SO 714(E), dated 7-10-1997.

Note: Deduction under Sec. 80IA of the Income Tax Act has been extended upto 31.3.2002.