TaxTMI 
TaxTMI 
2015 (6) TMI 1206
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....e company claimed 100% tax holiday under section 80IA of the Act until March, 2015. The AO was of the opinion that assessee is not engaged in development of infrastructure facilities because the agreement with NHAI and the certificate thereof shows that it is not a new infrastructure facility but widening of the roads. In his opinion the word 'new' deserves to be emphasised and widening cannot be equated with new construction, in which event assessee cannot be considered as eligible for the purpose of claiming deduction under section 80IA of the Act. In para 2.4.10 the AO observed that as per the agreement of contract it is clear that there was an existing road and it was further widened and hence it cannot be equated with development of in....
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....deduction u/s 801A in respect of the above at Rs. 1,85,80,756/- which was allowed by the AO vide order u/s 143(3) of the Act. In A.Y. 2007-08, the appellant had claimed the amount of Rs. 9,90,17,861/- u/s 801A in respect of the above project. The AO has, however, disallowed the same on the ground that the assessee has undertaken the above project of NHAI which envisaged strengthening of the existing 2 lanes from Kilometer 200/0 to Kelometer 253/0 and widening thereof to 4 lane equal carriage way with private sector participation on build operate and transfer (BOT) basis. It is observed by the AO that since the old two lane road was already in existence, the activity undertaken by the assessee was in the nature of widening the road and makin....
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....frastructure facility subject to satisfaction of the conditions laid down in the Section. The Explanation to subsection 80IA(4)(i) states that for the purpose of this clause, infrastructure facility means inter alia: - '(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;" The issue has been examined by the Board. It has been decided that widening of an existing road by constructing additional lanes as a part of a highway project by an undertaking would be regarded as a new infrastructure facility for the purpose of Section 80IA(4)(i). However, simply relaying of an existing road would not be classifiable as a new infrastru....