Purposive interpretation of residential house exemption: unregistered purchase agreement alone does not defeat relief, but investment must be verified...
Deduction for infrastructure development depends on the true nature of the contractual obligations, not on the fact that the work was awarded by government bodies. On the project documents, the assessee undertook design, engineering, procurement, construction, commissioning, and operation and maintenance, and also bore earnest money, security deposit, bank guarantee, mobilisation, cost overrun, liquidated damages, and defect rectification obligations. The Tribunal treated this as independent development of infrastructure facilities with financial, technical, and execution risks, not a mere works contract. The works contract exclusion was therefore held inapplicable and the deduction under section 80IA(4) was allowed.
Deduction for infrastructure development depends on the true nature of the contractual obligations, not on the fact that the work was awarded by government bodies. On the project documents, the assessee undertook design, engineering, procurement, construction, commissioning, and operation and maintenance, and also bore earnest money, security deposit, bank guarantee, mobilisation, cost overrun, liquidated damages, and defect rectification obligations. The Tribunal treated this as independent development of infrastructure facilities with financial, technical, and execution risks, not a mere works contract. The works contract exclusion was therefore held inapplicable and the deduction under section 80IA(4) was allowed.
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