2013 (7) TMI 172

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.... Act, 1961. 2. The assessee is a contractor for marine, mechanical, civil, under-water works and supplier of machinery and equipment on hire. The assessee is also engaged in the business of marine products. During the previous year relevant to the assessment year 2005-06, the assessee has claimed a deduction of Rs. 18,21,641 under section 80-IA being the maintenance of infrastructure facility. During the course of hearing, the assessee was asked to produce the supporting evidence for claiming deduction under section 80-IA. They produced the agreement entered into with the Inland Waterways Authority of India. It shows the assessee has undertaken the work of construction of permanent banks of the Champakara canal and the Udyogmandal canal ....

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....an appeal before the Commissioner of Income-tax (Appeals). On re-appreciation of the entire material on record and after referring to various judgments, the Appellate Commissioner held that the assessee is a mere contractor executing civil works for an infrastructure enterprise and is covered under the Explanation to section 80-IA and, therefore, the assessee is not eligible to claim the deduction and dismissed the appeal. Aggrieved by the said order, the assessee preferred an appeal to the Tribunal. The Tribunal also re-appreciated the entire evidence on record, looked into the decisions cited by the parties and held that the assessee has been engaged to do only the repair work and maintenance thereof at the relevant period, which is a mer....