Appeal dismissed as infrastructural development criteria not met under section 80-IA(4) for A.Y. 2006-07.

The appeal was dismissed as the Tribunal upheld the denial of deduction u/s 80-IA(4) for the assessee for A.Y 2006-07. The Tribunal found that the assessee's activities did not qualify as developing infrastructural facilities as defined in the relevant section, leading to the rejection of the deduction claim. The decision emphasized the necessity of ensuring alignment between activities and legal provisions to claim deductions under the Income Tax Act.

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Issues involved: Appeal against disallowance of deduction u/s 80-IA(4) for A.Y 2006-07.

Summary:
The appeal was filed by the assessee against the order of the CIT(A)-I, Pune disallowing the deduction u/s 80-IA(4) amounting to Rs. 99,34,780. The Tribunal noted that the issue was identical to a previous order against the assessee for A.Y 2003-04 to 2005-06. The assessee's argument regarding Circular No.10/2005 was rejected as structures like foot over bridges and road signals were not considered integral parts of the road for the purpose of deduction u/s 80IA(4). The Tribunal emphasized that the Explanation to Section 80IA (4) clearly defines infrastructural facility, which did not align with the activities of the assessee. It was concluded that the assessee did not develop any infrastructural facility as defined in the relevant section, leading to the denial of the deduction u/s 80IA. The Tribunal upheld the AO's decision to deny the deduction, citing similar reasoning from previous assessment years. The appeal was ultimately dismissed, and the order of the CIT(A) was upheld.

This judgment highlights the importance of aligning activities with the specific provisions of the law to claim deductions under relevant sections of the Income Tax Act.

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