Developer status under Section 80-IA(4) confirmed where development-only enterprises transfer possession, enabling deduction despite contract labels.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Section 80-IA(4) permits deduction for enterprises that only develop infrastructure facilities; development-only enterprises fall within the provision and are eligible for deduction. Whether an assessee is a developer or merely a works contractor depends on the contractual and factual matrix-labels and periodic payments do not automatically disqualify developer status. Relevant factors include allocation of financial, operational and executional risks, engagement in planning/design/execution, and deployment of assets and personnel; on such facts an entity qualifies as a developer. Handing over possession of the completed facility to the government qualifies as a 'transfer' for the provision's purposes, satisfying the transfer requirement.....