TaxTMI 
TaxTMI 
2012 (8) TMI 356
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....ction of disallowance of deduction of Rs.27,00,419/- originally made by the AO under section 80IA(4) of the Act. 3. Confirming the action of disallowance of deduction of Rs.31,49,349/- originally made by the AO under section 80IB(10) of the Act. 4. Dismissing the ground of appeal taken by the Appellant challenging the very assessment, which was completed by the AO without jurisdiction." 2. Ground nos. 1 and 4 have not been pressed by the assessee, therefore, the same are dismissed. 3. Ground no.2 is against not allowing deduction u/s 80IA(4) of the Act for Rs. 27,00,419/-. The brief fact is that the assessee filed first return on 30.10.2006 at total income of Rs. 94,72,580/-, which was revised on 15.10.2007 at total income at Rs. 36,22,....
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....tion in paragraph nos. 6 to 11 which is reproduced as under:- "After the substitution of the Explanation the legal position stands further fortified to the effect that the assessee deriving profit and gains from contracts are not eligible for deduction under the section. The case laws relied upon by the Ld. A.R. do not help his case as either they have been rendered on different facts or after the amendment in Explanation below Sub section (13) of Sec. 80-IA by the Finance (No.2) Act 2009 they have been rendered ineffective. Since, in the present case the appellant was doing only contract work, the benefit of Sec. 80- IA cannot be extended to it. Therefore, the disallowance made by the A.O. amounting to Rs. 27,00,419/- is hereby confirmed.....
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....enching, laying, testing, commissioning of 4 quad cables, installation and commissioning of gate, telephones and emergency posts etc. for the work of provision of 4 quad cable in Rajkot-Varaval Section of Rajkot/Bhavnagar Divisions of Western Railways. The nature of the contract is civil which had been assigned by the Railway Department in part of already rail laid and no new railway line or telecommunication system has been executed by the assessee. Thus, the ld. CIT(A) has rightly confirmed the addition of the AO. We do not find any reason to revert the order of the CIT(A). Accordingly the order of CIT(A) is confirmed and the assessee's appeal is dismissed. 8. The third ground of appeal is against not allowing the deduction u/s 80IB(10) ....
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....erence in the capacity of a sub contractor. An Explanation has been inserted below sub section (10) of Section 80IB by the Finance (No.2) Act 2009 with retrospective effect from 1.4.2001 laying as under: "for the removal of doubts, it is hereby declared that nothing contained in this sub-section shall apply to any undertaking which executes the housing project as a work contract awarded by any person (including the Central or State Government)" 7.5 In view of the above, and also the discussion made with regard to appellant's eligibility for deduction u/s 80IA(4) above, it is to be held that the appellant is not eligible for deduction u/s 80IB (10) of the Act. The disallowance of Rs.31,49,349/-, is therefore, hereby confirmed." 10. Now, t....