2017 (10) TMI 1506 - AT - Income Tax

Deduction u/s. 80IA(4) in respect of structure of foot over bridges and installation of road signages - Whether erection of foot over bridges and installation of road signage can be construed as infrastructure facility within the meaning of Explanation to section 80IA(4) ? - HELD THAT - The issue in the present appeal is identical to the one already adjudicated by Co-ordinate Bench of the Tribunal in assessee s own case for assessment year 2010-11 2015 (10) TMI 2773 - ITAT PUNE . The assessee has not placed on record any material to show any distinguishing features in assessment year under appeal. Therefore, we find no reason to take a different view. Following the order of Co-ordinate Bench, we hold that the assessee is not eligible for claiming deduction u/s. 80IA(4) in respect of construction of foot-over bridges and installation of road signages as they do not fall within the ambit of infrastructure facility within the meaning of Section 80IA (4) of the Act. Accordingly, appeal of the assessee is dismissed being devoid of any merit.

Summary

Issues:
Interpretation of "infrastructure facility" under Section 80IA(4) of the Income Tax Act, 1961 for deduction claims.

Analysis:
The case involved the appeal by an assessee against the Commissioner of Income Tax (Appeals) order denying deduction under Section 80IA(4) for assessment year 2011-12. The assessee, engaged in infrastructure development for Indore Municipal Corporation, claimed deduction for foot-over bridges and road signages. The Assessing Officer disallowed the claim, stating they did not qualify as "infrastructure facility." The Commissioner upheld this decision, citing a Karnataka High Court case. The assessee appealed to the Tribunal, arguing that the structures were integral to roads and thus qualified for the deduction.

The Tribunal examined a similar case from a prior assessment year where the deduction was denied for similar structures. The Tribunal found that the activities did not meet the definition of "infrastructure facility" as per Section 80IA(4). The Tribunal highlighted that the construction of foot over bridges and road signages did not constitute development of infrastructural facilities as defined in the Act. The Tribunal emphasized that the structures were not integral or inseparable parts of the roads and did not enhance the road's basic functionality.

The Tribunal rejected the assessee's appeal, stating that the facts were identical to the previous case where the deduction was denied. The Tribunal held that without any distinguishing features presented by the assessee, they could not claim the deduction under Section 80IA(4) for the construction of foot-over bridges and road signages. The Tribunal concluded that the structures did not fall within the scope of "infrastructure facility" as defined in the Act, affirming the denial of the deduction.

In summary, the Tribunal dismissed the assessee's appeal, upholding the denial of the deduction under Section 80IA(4) for the construction of foot-over bridges and road signages. The decision was based on the structures not meeting the criteria of "infrastructure facility" as outlined in the Income Tax Act, 1961.