2018 (1) TMI 1479 - AT - Income Tax

Deduction u/s 80IA(4) - developed operated and was to transfer the project in agreement with the constitutional body - company has entered into an agreement with GSRDC - transfer the project in agreement with the constitutional body i.e. an agency as defined under section 2(e) of the Gujarat Infrastructure Development Act - Held that - As decided in assessee s own case 2017 (10) TMI 1314 - ITAT AHMEDABAD assessee has developed operated and was to transfer the project in agreement with the constitutional body i.e. an agency as defined under section 2(e) of the Gujarat Infrastructure Development Act 1999 under the Gujarat Development Act and also in direct and explicit agreement and approval of Gujarat government which has given land and allowed to collect toll fee. Assessee company fulfills the conditions as required under section 80IA(4) including Section 80IA(4)(i)(b) and has developed operated and was to transfer the infrastructure facility and therefore is eligible for the deduction claimed under the section. GSRDC is an extended arms of the Gujarat State and is entitle to eligible for deduction - Decided against revenue

Summary

Issues:
Appeal against order under section 143(3) of the Income-tax Act, 1961 for assessment year 2012-13. Disallowance of deduction under section 80IA(4) by the Assessing Officer.

Analysis:
The appeal was filed by the Assessing Officer against the order passed by the CIT(A), Gandhinagar, Ahmedabad, regarding the assessment for the year 2012-13. The grievance of the Assessing Officer was the disallowance of a deduction under section 80IA(4) amounting to ?4,17,24,780. The Assessing Officer contended that the deduction was disallowed after proper justification of facts and should be upheld.

The representatives agreed that the issue was already decided in favor of the assessee by a previous order of the coordinate bench for the assessment years 2009-10, 2010-11, and 2011-12. The Tribunal in the previous order had held that the assessee had fulfilled the conditions under section 80IA(4) by developing, operating, and transferring the project in agreement with a constitutional body and the Gujarat government. The Tribunal considered the agency as an extended arm of the Gujarat State and eligible for the deduction claimed under the section.

Considering the precedent set by the coordinate bench in the assessee's own case for the previous assessment years, the Tribunal dismissed the issue raised by the Assessing Officer in the current appeal. The Tribunal found no reason to deviate from the view taken in the previous case and upheld the eligibility of the assessee for the deduction under section 80IA(4).

Ultimately, the Tribunal dismissed the appeal of the Revenue, affirming the decision in favor of the assessee. The judgment was pronounced on the 2nd day of January 2018 in an open court session.