High Court questions bus shelter deduction eligibility under Income-tax Act

The High Court of Calcutta examined the eligibility of bus shelters for deduction under section 80IA of the Income-tax Act, 1961. The court questioned the allowance of the deduction by the Income-tax Appellate Tribunal, indicating that bus shelters might not meet the criteria as infrastructural facilities. The court allowed an appeal for further consideration on this specific issue. Regarding the delay in tax deposit, the court found it to be a factual matter rather than a legal one, as the Act provides mechanisms for addressing late deposits. The court issued notices and procedural instructions to the parties for further proceedings.

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Issues involved: Interpretation of deduction u/s 80IA for bus shelters; Delay in tax deposit

Interpretation of deduction u/s 80IA for bus shelters:
The High Court of Calcutta considered the substantial question of law regarding the eligibility of bus shelters for deduction u/s 80IA of the Income-tax Act, 1961. The court questioned whether the Income-tax Appellate Tribunal erred in allowing the deduction for bus shelters, emphasizing that they may not qualify as infrastructural facilities or form an integral part of the project as required by the provisions of Section 80IA. The court admitted the appeal for further hearing on this specific point.

Delay in tax deposit:
Another issue raised was the delay in depositing the tax amount, which was approximately one month. The court determined that this issue pertains to a question of fact rather than a question of law. The Act itself provides power for dealing with late deposits, and as such, the court decided not to formulate any specific point on this matter.

The court directed the issuance of a notice to the respondent and instructed the preparation and filing of the paper book after the Christmas vacation. Parties were granted liberty to mention for enlistment in the list, and all parties were required to act on a xerox signed copy of the court's order.

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