2017 (6) TMI 1260

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....NIL income after claiming deduction u/s 80-lA Act under normal provisions and MAT income of Rs. 1,84,42,117/-, and the return was processed u/s 143(1) of Income Tax Act, 1961. The assessee's case was selected for scrutiny under CASS, and notice u/s 143(2) of the Act was issued and served on the assesse by the then the assessing officer as there was a change in incumbent officer and he had issued notice u/s 143(2) of the Act. Subsequently the Assessing Officer passed an order u/s.143(3) of the Act, by assessing an income of Rs. 25,68,140/- under the head income from business, thus making an addition of Rs. 25,68,140/- alleqedlv that while computing the deduction u/s 80-1A, the Assessing Officer had not allowed the deduction for Kerala Unit situated at Palakkad. 3. The assessee during the assessment proceedings submitted that the Assessing officer ignored the explanation of the Assessee and, passed the order by stating that approval issued by the Kerala State Pollution Control Board is not in assesse's name. Deduction u/s 80-lA of the Act is applicable to an enterprise who has entered into an agreement with the central/state government, local authority or any other statutory....

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....ernnment(s). On perusal of the same, it is observed that with regard to Tamilnadu and Andhra Pradesh site(s), the, company has been accorded approval by the Tamilnadu/ Andhra Pradesh Pollution Control Board to operate a facility for collection, reception, storage, transport and disposal of biomedical waste. With - regard to the Kerala site, the assessee company has filed an approval issued by the Pollution Control Board of Kerala, which is not in the name of the assessee company. Accordingly, the assessee company vide order sheet noting dated 8.01.2013 was informed by ld. Assessing Officer that since the approval issued by the Kerala State Pollution Control Boards not in its name, the assessee is not eligible for claim u/s.80IA on the profits derived from Kerala Unit. The ld. Assessing Officer further held that the assessee has no explanation to offer in this regard. The ld. Assessing Officer concluded that Section 80lA is applicable to an enterprise who has entered into an agreement with the Central/State Government, Local Authority or any other statutory body for developing infrastructure facility which includes solid waste management system. In this case, the assessee has not en....

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....ium of such companies [or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act b). it has entered Into an agreement with the central government or a state government or a local authority or any other statutory body for (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining a new infrastructure facility; c). it has started or starts operating and maintaining the infrastructure facility on or after the 1st day of April,1995: [Explanationfor the purposes of this clause, "infrastructure facility" means: (a). a road including toll road, a bridge or a rail system; (b). a highway project including housing or other activities being an integral part of the highway project; (c). a water supply project, water treatment system, irrigation project, water treatment system, irrigation project, sanitation and sewerage system or solid waste management system;] The assesse made an agreement on 1st November,200B with The Indian Medical Associate (IMA) Kerala State Branch a Society registration act, 12 of 1955 as No. T.1119/10 having its headquarters at Anayara Thiruvananthapuram (IMAGE) The mai....

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.... the Kerala Palkkad Unit. The ld. Counsel pleaded that the Assessing Officer ignored the explanation of the appellant and passed the order without any basis by disallowing the deduction. 7. The ld. Commissioner of Income Tax (Appeals) on perusal of the observations of the ld. Assessing Officer and contention of ld. Authorised Representative stated that assessee has not fulfilled the conditions laid down for claiming deduction u/s.80IA(4), as the assessee has not entered into an agreement and does not have approval from Kerala Pollution Control Board to operate a facility for collection, reception, storage, transport and disposal of the Bio-Medical Waste. Section 80lA is applicable to an enterprise which has entered into an agreement with the Central or State Government, local authority or any other statutory body for developing infrastructure facility which includes solid waste management system. In the absence of such approval, the deduction claimed u/s.80IA IS not allowed in respect of profit of Rs.24,00,133/- derived from the Kerala unit. Hence, the ld. Commissioner of Income Tax (Appeals) dismissed the grounds of the assessee. 8. Now before me, ld. Authorised Representative s....

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....ing the documents are illustrated hereunder:- Sl.No Particulars Page No's 1 Copy of Consent to operate, issued by Kerala State Pollution Control Board on 10/03/2016 under File No.PCB/HO/PLKD/ICO/62/08 to IMAGE 1-6 2 Copy of Authorisation issued by Kerala State Pollution Control Board under File No.PCB/HO/PLKD/15396/2009 to IMAGE 7-14 3 Copy of Agreement between The Indian Medical Association (IMA) and G.] Multiclave (India) Pvt.Ltd entered into on 20th April, 2003 15-21 4 Copy of Agreement between The Indian Medical Association (IMA) and G.j Multiclave (India) Pvt.Ltd entered into on 1st November, 2008 22-27 5 Copy of Agreement between The Indian Medical Association (IMA) and G.j Multiclave (India) Pvt.Ltd entered into on 1st November, 2012 28-32 6 List of Vehicles used for Bio Medical Waste Collection and Copies of Certificates of Registration of Vehicles used for operation 33-53 7 Copy of PAN Card of IMAGE 54 8 Details about IMAGE & List of office bearers of IMAGE 55-58 9 Paper Presentation on Bio Medical Waste Management in Kerala published in Clean India Journal 59-62 Further, assessee also filed the case laws on similar issues which are as unde....