Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
The assessee invested its own funds, provided bank guarantees, engaged skilled staff and laborers, brought necessary machinery, adhered to timelines, bore consequences for delays, and complied with quality standards for infrastructure projects undertaken on a sub-contract basis from private parties. The AO failed to examine the terms and CBDT circular clarifying the scope of "developing" infrastructure facilities. The Bombay High Court's decision in CIT vs. ABG Heavy Industries Ltd. favored the assessee's eligibility for deduction u/s 80IA(4). Considering the totality of facts, the matter was restored to the AO to re-examine whether the assessee qualifies as a developer or works contractor for each project, in light of the High Court ruling, CBDT circular, and project terms.
The assessee invested its own funds, provided bank guarantees, engaged skilled staff and laborers, brought necessary machinery, adhered to timelines, bore consequences for delays, and complied with quality standards for infrastructure projects undertaken on a sub-contract basis from private parties. The AO failed to examine the terms and CBDT circular clarifying the scope of "developing" infrastructure facilities. The Bombay High Court's decision in CIT vs. ABG Heavy Industries Ltd. favored the assessee's eligibility for deduction u/s 80IA(4). Considering the totality of facts, the matter was restored to the AO to re-examine whether the assessee qualifies as a developer or works contractor for each project, in light of the High Court ruling, CBDT circular, and project terms.
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