TaxTMI 
TaxTMI 
2016 (7) TMI 204
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.... : 2. The effective Ground of appeal is about disallowance of claim made by the assessee u/s.80IA(4) of the Act in respect of income derived from activity of development of eligible infrastructural facilities. In this case original order was completed on 31.12.2007, u/s. 143(3) of the Act by the AO. He held that the assessee was not entitled to claim deduction u/s.80IA(4) of the Act. 3. Aggrieved by the order of the AO, assessee preferred an appeal before the First Appellate Authority (FAA), who confirmed the order of the AO. The assessee, agitated the issue before the Tribunal who remanded back the matter to the file of the AO with certain directions. In the meanwhile, the assessee joined as an intervener on the issue of section 80IA(4) ....
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....favour of the assessee (ITA No.5230/Mum/2012, AY 2008-09, dated 26.09.2014) .He relied upon the said order. Departmental Representative (DR) left the issue to the discretion of the Bench . 5. We have heard the rival submission and perused the material and find that it is a remand matter wherein the Hon'ble High Court has directed the Tribunal to decide the issue considering the available material. We find that in the case of Patel KNR, JV (supra), the Tribunal has deliberated upon the issue after recording the basic facts as under : "3. Briefly stated relevant facts of the case are that the assessee is a Joint Venture(JV) between Patel Engineering Ltd. and KNR Constructions Ltd. and is engaged in business of Construction of Road, Hig....
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....on of the AO, assessee filed an appeal before the first appellate authority. 4. During the proceedings before the first appellate authority, assessee made elaborate submissions by mentioning that both the denial of deduction u/s.80IA(4) of the Act and restriction of TDs credit is not proper. Before the CIT(A), assessee relied on various decisions i.e., the judgment of the Jurisdictional High Court in the case of ABG Heavy Industries Ltd. W reported in 322 ITR 323 (BOM); order of the ITAT, Hyderabad "Bench in the case of GVPR Engineers Ltd vs. ACIT [21 Taxmann.com 246] (Mum); Laxmi Civil Engg. P. Ltd vs. Addl. CIT (ITA No.766/PN/09, 254/PN/08, 431/PN/07). It was demonstrated before the CIT(A) that the Larger Bench decision in the case of ....
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....ent of the ITAT, Hyderabad Bench in the case of M/s. KMC Constructions Ltd vs. CIT, 21 Taxmann.com 138 (Hyderabad), dated 16.3.2012 which belongs to the subsequent period to the cited Larger Bench decision 'in 'the case of B.T. Patil & Sons Belgaum Construction Pvt Ltd (supra). In fact the CIT(A) extracted the para 46 to 44 of the said order of the Tribunal in the, case of M/s. KMC Constructions Ltd (supra) and directed the AO to allow the deduction claimed u/s. 80IA( 4) of the Act. para 2.31 of the impugned order isrelevant in this regard. 'The ratio of the said decision is that the assessee, who is engaged in this kind ,of contract work involving the NHAI projects is not merely a works contractor and he is a developer who is e....