Reassessment and fee-for-technical-services classification: reopening upheld, but certain reimbursements and mobilization charges fell outside treaty ...
Section 80P deduction for co-operative societies remains available despite nominal members and housing society status, with limited interest income tr...
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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