2019 (5) TMI 1328

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....2.2016, whereby the learned Tribunal allowed the Appeal for the Assessment Year 2012-2013 and held that the Assessee is entitled to the benefit of deduction under Section 80IA of the Act:- "i) Whether the Income Tax Appellate Tribunal was right in holding that the Assessee is eligible for deduction under Section 80IA though the Assessee did not fulfil the condition laid down in Section 80IA(4) of having a contract with any Government/Authority referred to in that section, when the assessee is only a Works Contractor? ii)Whether the Income Tax Appellate Tribunal was right in holding that the Assessee is eligible for deduction under Section 80IA, without examining the effect of explanation inserted at the end of the section ....

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.... even to a transferee or a contractor who is approved and recognised by the concerned authority and undertakes the work of the said development of infrastructure facility or only operating or maintaining the same. The Proviso to sub-section (4) stipulates that subject to the fulfillment of conditions, the transferee will be entitled to the said benefit, as if the transfer in question had not taken place. It has been found by the Assessing Authority himself, in the present case, that the present Assessee Mis. Chettinad Lignite Transport Services Private Limited under an Agreement dated 16.04.2002, captioned as Lignite Transport System with Mls.ST-CMS Electric Company Private Limited, had undertaken the work of developing the said railway sid....

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.... Act. 10. The learned counsel for the Revenue relied upon a decision of this Court in the case of M/s.Covanta Samalpatti Operating Private Limited, Chennai-20 v. The Assistant Commissioner of Income Tax, Company Circle I (3), Chennai-34, reported in (2018) 93 Taxmann 38. In the said case, the claim of the Assessee company, which was engaged_in power generation, for deduction under Section 80IA of the Act was denied by the Revenue on the ground that the Assessee Undertaking had not been set up for generation and distribution of power and that the Assessee was only a contractor for the maintenance work of power plant, which was owned by Samalpatti Power Corporation Private Limited (SPCL). On these facts, the Court held that the Asses....