TaxTMI 
TaxTMI 
2016 (8) TMI 1623
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....perating from outside the airport. As a result only limited kind of repair and maintenance activity was performed by assessee. The Airport Authority of India (AAI) which is engaged in development and operation of airport throughout India, came out with tender for developing hangar for repair and maintenance of aircraft at Juhu Airport on 07.06.2001. The assessee undertook the development of hangar and entered into a concession agreement for the said purpose with AAI on 19.12.2002. As per the terms of the agreement the assessee was to construct the hangar on BOT basis and was to operate the same for 15 years. The assessee developed the said hangar and claimed deduction u/s. 80IA(4) of the Act on the income received from repairs and maintenance of aircrafts. However, A.O. declined the assessee's claim on the plea that there are many hangars at the airport and if the assessee's claim that the development of hangar is covered under definition of 'infrastructural facility' is accepted then every structure such as shopping malls, hotels, restaurants which have utility purpose of airport or forming part of airport would be eligible for deduction u/s 80IA of the Act. In view of....
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....y Industries (322 ITR 323). In the said case, the assessee was providing service of supply, installation, testing, commissioning and maintenance of cranes and it claimed deduction u/s. 80IA(4) of the Act on the income received from operation and maintenance of crane at port. It was held that assessee had developed cranes for providing loading and unloading service at the port and which amounts to development of port which is an infrastructure facility as per S. 80IA(4) of the Act. It was held that the assessee is eligible for deduction u/s 80IA(4) of the Act even if the assessee has developed a part of the port and not the whole of it. 7. On the other hand, the ld. DR relied on the order of the lower authority and contended that income generated through repair and maintenance of aircraft through hanger does not qualify for deduction u/s. 80-IB, since same is not in the nature of infrastructure. 8. We have considered the rival contentions and carefully gone through the orders of the authorities below. We had also deliberated on the judicial pronouncements referred by the lower authorities in their respective orders as well as cited by the ld. AR and ld. DR during the course of....
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....er statutory body for (i) developing or (ii) operating and maintaining or (iii) developing operating and maintaining a new infrastructure facility,] (c) it has started or starts operating and maintaining the infrastructure facility on or after the 1st day of April, 1995: [Explanation.-For the purposes of this clause, "infrastructure facility" means- (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' (c) a water supply project water treatment system, irrigation project sanitation and sewerage system or solid waste management system,' (d) a port airport, inland waterway [inland port, navigational channel in the sea]} It is evident from the above definition that 'airport' is one of the defined infrastructural facility, development of which is eligible for deduction u/s 80IA(4) of the Act. Hangar is very much an essential part of the airport which provides for maintenance of aircraft. As per AAI Act, 1994 airport is defined as under: "airport" means a landing and taking off area for aircrafts, u....
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....ge, loading and unloading services will fall within the definition of port whereas in the case of assessee there is no such circular hence, the facts of that case will not apply to the assessee. In this regard, we are of the view that the legislative intent behind s. 80IA(4) of the Act was to give incentive to investment for infrastructural growth in the country. This intent has also been considered by the Hon'ble High Court in ABG Heavy Industries (supra) and held that one has to consider the intention of the department while issuing the said circular. The circular issued by department stating that structures built for providing storage, loading and unloading services will fall within the definition of port clearly manifest the legislative intent that the whole facility is not to be developed in order to be eligible to claim deduction u/s 80IA(4) of the Act. For this purpose reliance can be placed on the decision of the Hon'ble Supreme Court in the case of Bajaj Tempo v. CIT (196 ITR 188) wherein it has been emphasized that a provision in taxing statue granting incentives for promoting growth and development should be construed liberally. All the decisions stated hereinabo....