TaxTMI 
TaxTMI 
2024 (8) TMI 1164
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....tment in the project coupled with the fact that risk and reward owned by him fully. The appellant is entitled to relief granted under section 80(IA) of the income tax since the appellant eminently qualifies for relief in terms of plain language of section 80(IA) and also binding decisions of the ITAT, CBDT Circular and High Court decisions cited before him. 3. The learned AO had erred in disallowing the claim of deduction u/s. 80-lA without verifying the documents of the Appellant who has entered into agreement with the Government Authorities for claim of exemption for infrastructure facilities before disallowing the same. The claim deduction u/s. 80-IA was to an extent of Rs. 4,30,38,966/-. 4. The appellant further submits that in an identical case, the Commissioner of Income-tax (Appeals) has allowed the claim for deduction u/s. 80-IA in another case following the decision of Patel Engineering Ltd. Vs. Deputy Commissioner of Income tax reported in 94 TTJ (Mum) 646 and ACIT Vs. Bharat Udyog Limited reported in 123 TTJ 689. The decision of the CIT(Appeal) was upheld by the Hon'ble ITAT, C-Bench, when the department filed an appeal against the order of the CIT(....
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....the philosophy behind incentive relief u/s 80 IA is to promote and accelerate economic growth and the administrative authorities should not whittle down the plentitude or exemption granted by the Parliament. 9. The learned CIT(A) fundamentally failed to appreciate the various circulars issued by the CBDT in regard to widening the scope of relief 10. The learned CIT(A) ought to have appreciated that in taxation matters more emphasis must be placed upon the business aspect of the transaction rather than the purely legal and technical aspect (see 17 ITR 545, 28 ITR 928 followed in 51 ITR 849 SC) 11. The CIT(A) failed to appreciate that piece of development infrastructure work would also qualify for relief u/s 80IA as has been held in the case of AGB industries reported 322 ITR 323 and the said decision had become final in the light of dismissal of SLP by the Supreme Court. 12. The learned CIT(A) fundamentally failed to appreciate that the factual aspect of work undertaken by the appellant, namely, pumping its own resources, employing its own technical personnel and its own design without the intervention of the principal and taking responsibility, r....
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....Aggrieved by the ld. CIT(A) order, the assessee is in appeal before us. 4. The Ld. Counsel for the assessee, referring to provisions of section 80-IA(4) of the Act and explanation provided therein, submitted that, the assessee is eligible for deduction u/s. 80-IA(4) of the Act, because the assessee has satisfied the conditions prescribed therein, including developing the infrastructure project by entering into agreement with state government or other authority and also executes developmental works by investing its own funds. Since, the appellant has satisfied all the conditions prescribed u/s. 80-IA(4) of the Act, the Assessing Officer cannot disallow deduction claimed by the assessee, merely for the reason that the assessee is executing various contract works for government or semi-government departments. The Ld. Counsel for the assessee, referring to various decisions including the decision of Hon'ble Madras High Court in the case of PCIT vs V.A. Tech Wabag Pvt Ltd [2020] 424 ITR 105 (Mad) submitted that, an identical issue has been considered by the Hon'ble High Court in light of provisions of section 80-IA(4) of the Act and held that, when assessee entered into contracts wit....
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.... of the Act, infrastructure facility has been defined which includes a road including toll road, a bridge or rail system, a highway projects, water supply projects and a port or airport etc. The explanation has been inserted by the Finance Act, 2009 with retrospective effect from 01.04.2000 and as per said explanation nothing contained in section 80-IA(4) of the Act, shall apply in relation to a business referred to in sub-section (4), which is in the nature of works contract awarded by any person including central or state government and executed by the undertaking or enterprise referred in sub-section (1). In other words, deduction u/s. 80-IA(4) of the Act, shall not be allowed to an enterprise which carries a civil contract work for a developer of infrastructure facility. In the present case, the assessee has claimed deduction u/s. 80-IA(4) of the Act and claimed that it has satisfied all the conditions prescribed u/s. 80-IA(4) of the Act. The Assessing Officer disallowed deduction u/s. 80-IA(4) of the Act, on the ground that the assessee is not a developer of any infrastructure project, but a simple works contractor executing civil construction work for various government and s....