Infrastructure facility deduction denied for road signages and foot over bridges, as the work was not treated as road development.

Construction of road signages and foot over bridges, by itself, does not amount to development of an infrastructure facility in the nature of a road for section 80IA(4) of the Income-tax Act, 1961. The Tribunal followed earlier orders in the assessee's own case on identical facts and held that the profits from this activity were not eligible for the deduction. The issue was decided against the assessee and in favour of the Revenue, and the disallowance of the deduction was sustained.

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Issues: Whether the assessee was entitled to deduction under section 80IA(4) of the Income-tax Act, 1961 in respect of profits derived from construction of road signages and foot over bridges, treating the activity as development of infrastructure facility.

Analysis: The claim had already been decided against the assessee in earlier assessment years on identical facts. The activity undertaken consisted mainly of putting up road signages and constructing foot over bridges, which did not amount to development of a road or other infrastructure facility within the meaning of section 80IA(4). The issue was covered by the earlier orders in the assessee's own case, and the mere pendency of the assessee's appeal before the High Court did not justify keeping the present appeals pending.

Conclusion: The assessee was not entitled to deduction under section 80IA(4); the issue was answered against the assessee and in favour of the Revenue.

Final Conclusion: The consolidated appeals failed on the only substantive issue and the disallowance of deduction under section 80IA(4) was sustained.

Ratio Decidendi: Construction of road signages and foot over bridges, by itself, does not constitute development of infrastructure facility in the nature of a road for the purposes of section 80IA(4) of the Income-tax Act, 1961.

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