TaxTMI 
TaxTMI 
2009 (7) TMI 904
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....ne thousand one hundred and twelve only) claimed under section 80-IA of the Income-tax Act, 1961. 2. That the authorities below have further erred in law and on facts of the case while disallowing and adding back expenditure incurred quite incidental to business into income on account of the following:- (i) Production expenses Rs. 3,58,000 (ii) Employees Provident fund Rs. (iii) EDP expenses Rs. 32,500" 2. At the outset, the learned counsel for the assessee has stated at the bar that ground No. 2 is not pressed. Rejected as not pressed. 3. Apropos ground No. 1, in brief, the assessee company is engaged in the business of infrastructure development and construc....
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....had entered into an agreement with the Central Government and State Government or local authority or any other statutory body for developing or operating and maintaining or developing, operating and maintaining a new infrastructure facility; that the assessee was neither developing nor operating and maintaining nor developing, operating and maintaining a new infrastructure facility. The word 'new' in the section was inserted to encourage, creation of new infrastructure facility; and that in the assessee's case, the work assigned by the West Bengal Government to the assessee was of strengthening and improving the existing Bardwan Arambug Road and not of developing a new road or highway, hence, the assessee company could not claim the benefit....
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....Government of West Bengal; that it was in pursuance of the terms and conditions of the agreement that the work was executed and on comple-tion, it was transferred to the State Government; that the said project was under section 80-IA of the Act; that the authorities below have wrongly interpreted the word 'new' in section 80-IA (4)(1)(e) of the I.T. Act; that as per the provisions of section 80-IA, an enterprise carrying on the business of developing, maintaining and operating or developing, maintaining and operating any infrastructure facility is eligible for deduction under the said section; that the assessee duly fulfilled the conditions of section 80-IA; that the word 'new' has not been defined in the Income-tax Act; that however, secti....
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....nt works of such roads'. The name of the work of the assessee is 'strengthening/improvement of Burdwan-Arambug Road (N.H.7)' The works to be carried out by the assessee were as follows:- 1.Repairing of pot holes for the entire area of the road; 2.Strengthening of existing road surface; 3.Re-sectioning of damaged road surface; 4.Construction of drain; 5.Shouldering of width 1.0 mtr. of either side of the road; 6.Dressing and chill challing of flank. 10. These works were to be carried out in accordance with the schedule attached to the agreement (APB 21 to 25) wherein, very many minute details of the mode of carrying out such works have been meticulously given. 11. The authorities below have held that the assessee was ....
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....ereon, it was not possible to decide the question whether the machines were new; that it was necessary to find out whether the machines after being reconditioned were entirely different from the old machines and whether the latest means incorporated into them made the machines substantially new; and that in other words, the question was whether the reconditioning of the machines amounted to reconstruction or substitution of the entire machinery, meaning by entirety, not necessarily the whole, but substantially the subject-matter of the machinery. The Hon'ble Supreme Court directed the Hon'ble High Court to call for a supplementary statement of the case from the Tribunal and, after the receipt of such supplementary statement, to determine th....