2015 (7) TMI 1359

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.... the addition of Rs. 9,90,17,861/- made by the AO on account of claim of depreciation u/s 80IA(4)(i) of the I.T. Act, 1961. 2. That on the facts and circumstances of the case and in law, the ld. CIT(A) has failed to appreciate that fact that the scope of work of the assessee was both rehabilitation and strengthening of the existing two lane highway apart from widening thereof to four lanes and therefore, deduction u/s 80IA would not be available on the project income as the clarification contained in CBDT Circular No. 4/2010." 2. We have heard arguments of both the sides and carefully perused the relevant material placed on record. At the outset the ld. Authorized Representative (AR) submitted a copy of the order of ITAT 'D' Bench, Mumba....

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.... existing infrastructure facility which brings more efficiency and effective use of infrastructure facility supported by benefit of enduring nature and road widening work is a substantial improvement of existing road. Therefore, the assessee is entitled for deduction u/s 80IA(4) of the Act. 4. On careful consideration of above submissions, we note that the ITAT 'B' Bench Mumbai in assessee's own case for A.Y. 2008-09 ordered dated 02/06/2015 (supra) has decided the similar issue in favour of the assessee with following observations and conclusion:  "4. At the time of hearing the ld. Counsel also submitted that the first year of the claim of deduction u/s 80IA was A.Y. 2006-07 wherein the AO, in the proceedings u/s 143(3) of....

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.... clarified by the CBDT and the same is binding on the Revenue. In the light of the circular issued by CBDT and also the decision of ITAT Pune Bench, the expression development of infrastructure facility includes widening of roads. Under these circumstances we do not find any infirmity in the order passed by the CIT(A)." 5. In view of above in the light of clarificatory circular issued by CBDT and respectfully following the decision of ITAT Pune Bench in the case of Rohan & Rajdeep Infrastructure (supra) and order of the ITAT Mumbai dated 02/06/2015 in assessee's own case for subsequent assessment year 2008-09 (supra), we are inclined to hold that section 80IA of the Act mainly speaks about development of infrastructure facility and wh....