2019 (4) TMI 2163 - SCH - Income Tax

Disallowance of deduction u/s 80IA (4) - assessee undertaken road development project, as entered into an agreement with Gujarat State Road Development Corporation which was incorporated by the Government for the special purpose - Assessee contended that the GSRDC was performing all the functions of the State Government and therefore the concession agreement executed by GSRDC should be treated to have been entered into by the State Government - As decided by HC 2018 (5) TMI 1174 - GUJARAT HIGH COURT Significant factors in the present case are that the road widening project was cleared by the Government, land for such purpose was alloted by the Government. The concession agreement which GSRDC executed was approved by the Government. It was under the Government Resolution that the assessee would collect toll upon completion of such project. Upon the completion of the project period, the entire infrastructure so developed would vest in the Government. Signatory to the applicant may be GSRDC for all practical purposes and in essence, it was the agreement between the assessee and the State Government. Rigid interpretation of this provision as canvassed by the Revenue would only result into the assessees involved in genuine infrastructure development projects for and on behalf of the Government or local authorities would be denied the deduction merely on the ground that the State Government had created a nodal agency for working out the finer details and nittygritty of such infrastructure development. HELD THAT - Delay condoned. We see no reason to interfere in the matter. The special leave petition is dismissed. Pending applications, if any, shall also stand disposed of.

Summary

The Supreme Court dismissed the special leave petition after condoning the delay, stating there was no reason to interfere in the matter. Pending applications were also disposed of. No representation for the respondent.