2026 (4) TMI 415

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....CIT, Amravati Circle, Amravati for the Assessment Year 2015-16. 2. Brief facts of the case are that assessee is a private limited company, filed its e-return of income for AY 2015-16 on 30.09.2015 declaring income of Rs. 18,82,520/. The case of the assessee was taken up for a scrutiny through CASS. During the course of assessment proceedings, Ld. Assessing Officer ("AO") made disallowance of Rs. 2,17,21,362/- claimed as deduction u/s 80IA(4) of the Act. On verification of contract/agreements entered into by the assessee with various railway authorities, the Ld. AO noticed that the assessee executes signaling work and the nature of work executed by the assessee was of a "works contract" and not of a developer who designs and creates a new....

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....s executing work contract and is not a developer who designs and develop project so as to be eligible for deduction u/s 80IA of the Act. He drew our attention at para 3 of assessment order where details of contract agreement with Railway Authorities, nature of work have been mentioned which indicate that nature of work executed by assessee is in the nature of work contract and not a developer. He further submitted that deduction u/s 80IA ought not to have been allowed by Ld. CIT(A). Therefore, prayed that that grounds of appeal may be allowed. 5. Learned counsel of assessee submitted that the issue in dispute is covered in favour of assessee by the decision of ITAT, Nagpur Bench in assessee's own case in ITA Nos.282, 293 & 294/Nag/2013 f....

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.... dated 18/12/2015 has directed to allow the claim of assessee u/s 80IA as assessee is developer of Rail System being infrastructure facility. The relevant findings as recorded in the order of tribunal at para 12 is as under: "12. In the light of the above discussed and the view taken by the Hon'ble Bombay High Court, we are of the considered opinion that in a situation when the assessee has developed as well as design of the railway signaling system and thereupon procured the material as per the specification of the RDSO / DOT hence the basic conditions have been satisfied. After the completion of fabrication the duty of the assessee was to erect as well as install the system at several designated places as per the agreements signe....