Deduction for infrastructure projects under 80IA(4) allowed for constituent JV members; fresh 153A claims permitted only if assessment abated.

A return filed under section 153A is treated as a fresh return for years where the original assessment has abated, permitting first-time claims such as the project-specific deduction under Section 80IA(4); where assessments were concluded (unabated) and no incriminating material is found, first-time claims in the 153A return are not permissible. Separately, where an infrastructure project awarded to a JV/Consortium is actually executed by a constituent member who performs the work, bears the risks and meets statutory conditions, that constituent member qualifies as the operative developer and may claim the Section 80IA(4) deduction.

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Issues: (i) Whether a claim for deduction under Section 80IA(4) of the Income-tax Act, 1961 can be made for the first time in the return filed in response to a notice under Section 153A of the Income-tax Act, 1961 (search assessments), and if so, in what circumstances; (ii) Whether profits from infrastructure projects awarded to a JV/Consortium but executed by the assessee (a constituent member) are eligible for deduction under Section 80IA(4) of the Income-tax Act, 1961.

Issue (i): Whether a fresh claim under Section 80IA(4) can be made first time in return filed under Section 153A.

Analysis: The statutory scheme of Section 153A distinguishes between assessments pending on the date of search (which abate) and assessments already concluded (unabated). Where assessment has abated, the return filed under Section 153A(1)(a) takes the place of the original return and the assessee may make claims as in a fresh return. Where assessment is unabated/concluded and no incriminating material is found in the search, completed assessments cannot be disturbed and a fresh claim made first time under Section 153A is not permissible; relevant provisions including Sections 80A(5) and 80AC require claims to be made in a return filed on or before the due date under Section 139(1) unless the assessment has abated.

Conclusion: In case of abated assessments, a fresh claim under Section 80IA(4) may be made in the return filed under Section 153A. In case of unabated/concluded assessments, a fresh claim made for the first time in the Section 153A return is not permissible (decision in favour of Revenue on this point for unabated years; in favour of Assessee for abated year).

Issue (ii): Whether profits from projects awarded to a JV/Consortium but executed by the assessee as a constituent member qualify for deduction under Section 80IA(4).

Analysis: Section 80IA(4) provides a project-specific deduction where an eligible enterprise carries out development/operation and maintenance of infrastructure projects and includes a proviso for successor entities. Where a JV/Consortium is formed to obtain and execute the project and the constituent member (assessee) actually performs the work, bears risks and satisfies the statutory conditions, the constituent member effectively fulfils the role of developer for the project. Coordinated tribunal precedents support allowing the deduction to constituent JV members who meet the conditions.

Conclusion: Profits derived from infrastructure projects awarded to a JV/Consortium but executed by the assessee as a constituent member qualify for deduction under Section 80IA(4) (decision in favour of Assessee).

Final Conclusion: The Revenue appeals are dismissed; the assessee is entitled to deduction under Section 80IA(4) for projects executed by it as a constituent of JVs/Consortia, and the permissibility of a fresh claim in a Section 153A return depends on whether the assessment for the year had abated (allowed for the abated year, disallowed for unabated years).

Ratio Decidendi: Where an assessment has abated on the date of search, the return filed under Section 153A is treated as a fresh return permitting claims including Section 80IA(4); where assessment is unabated/concluded and no incriminating material is found, a first-time claim in the Section 153A return is not permissible; a constituent JV member who executes and bears risks of the project satisfies the project-specific requirement of Section 80IA(4) and is entitled to the deduction.

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