TaxTMI 
TaxTMI 
2021 (1) TMI 782
X X X X Extracts X X X X
X X X X Extracts X X X X
....rnational Airport Ltd. (BIAL). During the course of assessment proceedings the AO noticed that the assessee has claimed deduction of Rs. 46,10,87,539 u/s. 80IA of the Income-tax Act, 1961 [the Act] and the assessee was called for to explain its eligibility for deduction. In response, the assessee submitted that it has entered into an agreement with BIAL for developing, operating and maintaining a new infrastructure facility as per section 80A(4)(i)(b) of the Act. It was contended that BIAL is a statutory body and hence deduction was allowable. The AO, however, rejected the contentions of the assessee. The assessee preferred appeal before the CIT(Appeals). 3. The CIT(Appeals) observed that similar issue had come up for consideration for AY ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Govt. or Sate Govt. or any local authority / statutory body, while assessee has entered into a Service provider Right holder Agreement with Bengaluru International Airport Ltd., a private limited company, for running this facility. 4. The CIT (A) ought to have appreciated that every facility of this nature in the vicinity of the airport cannot fit into the definition of "Airport". The definition of "Airport" as provided in other allied Acts does not bring into its ambit the cargo handling facility although situated within the airport area. 5. The CIT (A) ought to have appreciated that the assessee is only a contractor to whom certain rights were granted by BIAL to operate the cargo facility and such contractor cannot be called as a de....