TaxTMI 
TaxTMI 
2020 (2) TMI 827
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....43(3) r.w.s. 250(6) of the Act for the AY 2012-13. Considering the affidavit filed by the Revenue we hereby condone the 10 days delay in filing the appeal before the Tribunal. 2. The Revenue is aggrieved by the order of the Ld. CIT (A) because, the ld. CIT (A) had granted deduction to the assessee U/s. 80IA of the Act which the ld. AO had disallowed. The assessee is aggrieved by the order of the ld. CIT (A) because the Ld. CIT (A) had held that the assessee is not entitled for deduction U/s. 80IA of the Act with respect to Fluoride Removal Unit and Arsenic Removal Units. 3. The brief facts of the case are that the assessee is a private limited Company engaged in the business of developing, operating and maintaining community water sys....
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....) The water treatment plat is supplied to the village and such plant is erected in the building so constructed. f) The trial run is conducted to verify the working of the system. 3) The assessee undertakes maintenance of the plant for a period of 10 years. It supplies drinking water to the villagers at a cost of Rs. 2 to Rs. 7 per jar of twenty litres each. 4) The assessee undertakes maintenance during the said period of 10 years. 5) The assessee thus locates the place, prepares designs for construction of the building, undertakes construction of the building with its funds. 6) The assessee purchases the plant and erect at the place. All the necessary expenditure is incurred by the asses....
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....ssee is not a mere works contractor. In this regard, the assessee relied on the following decisions......." 5. Thereafter, the assessee has furnished the details of the equipment provided to the State Government with respect to the Water Treatment Plant. However, the Ld. AO rejected the explanation submitted by the assessee for the following reasons:- (i) The Core execution of work pertains to civil contract. (ii) Predominantly the assessee had only supplied and installed water plant as per the contract. (iii) Finance Act 2009 had made it clear that deduction U/s. 80IA of the Act is not available for works contract. (iv) The assessee is not acting in the capacity as a developer. 6. On appeal, the ld....
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....ded the conditions stipulated under 80IA(4)(i)(a)(b)(c) of the Act are fulfilled. Explanation to section 80IA(4) also makes it clear that infrastructure facility means a water supply project, water treatment system, irrigation project, sanitation and sewage system or solid waste management system. From the above, it is abundantly clear that the assessee shall be entitled for deduction U/s. 80IA(4) of the Act with respect to operating and maintaining of the water treatment system / water supply project. It is also clear that the assessee is not a developer but only operating and maintaining the water treatment system / water supply project. The contract work entrusted to the assessee for procurement and supply of water treatment system / wat....