9911796707
TMI Blog2012 (8) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... warranted - against assessee. Dis allowance of deduction u/s 80IB(10) - Held that:- The appellant is carrying out the project under reference in the capacity of a sub contractor - the land is owned by the Defence Ministry and assessee is mainly work contractor, the construction of house were for the Air Force not for any middle class - The permission of the Municipal Authority in the name of Defence Ministry with no full responsibility of the assessee for execution of the development projects - The assessee had not directly charged collection from the members but payments were received by the assessee from N.B.C.C. for work contract on fixed price - - dis allowance is thus warranted - against assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... . on page 6 to page 15 of the assessment order and thoroughly analyzed the deduction, u/s 80IA with reference to eligible business, regarding the validity of the claim control, completion certificate issued by the Railway department, developing operating and maintaining any infrastructure facility agreement with the Central Government and profit derived from business. There was a change in Section 80IA(13) with an explanation by the Finance Act 2007 with effect from 01.04.2000, which is being reproduced as under:- "Explanation: For the removal of doubts, it is here by declared that nothing contained in this section shall apply to a person who executes a works contract entered into with the undertaking or enterprise, as the case may be." T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 007 by the Hon'ble Finance Minister and argued that the purpose of incorporating this provision was to encourage private sector participation by way of investment in development of the infrastructure sector. He also relied upon the following cases:- (i) K.P. Varghese vs. Income Tax Officer & Another, for interpretation of the statutes, (ii) Bajaj Tempo Ltd. vs. Commissioner of Income Tax from Section 80(J), which include granting relief for encourage industrialization and has to be construed liberally, (iii) Commissioner of Income Tax vs. Vegetable Products Ltd., on two reasonable constructions- construction which favours the assessee must be adopted, (iv) Commissioner of Income Tax vs. S. Teja Singh, on interpretation of statutes & (v) Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had discussed his finding from page 16 to 21. After considering the reply of the assessee, he had concluded that the assessee company did not have derive income, not maintaining separate books of account for which undertaking or enterprises for claiming deduction u/s 80IA & 80IB (10). The assessee is a contractor of National Building Construction Company Ltd. The Defence Ministry had given tender to the N.B.C.C. for construction of flat in Varodra who had subcontracted this project of dwelling units to the assessee. The assessee also relied upon in case of CIT vs. Radhy Developer India Ltd. & Another (2012) 341 ITR (Guj.). The work pertained to Indian Army and Air Force and ownership of land was not disputed. Therefore, he rejected the clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mental D.R. opposed the deduction claimed by the assessee. 11. We have perused the order of the authorities below and gone through the case law cited by learned counsel for the assessee. As facts are clear from the assessment record that this contract was awarded to the N.B.C.C. by the Defence Ministry. The N.B.C.C. has again sub-contracted this project to the assessee. The Hon'ble Gujarat High Court in case of CIT vs. Radhey Developer India Ltd. (supra), has held that the developer should complete the housing project even on land not owned by the assessee but other condition has to be satisfied like Housing project is to be approved by the local authority which was aimed that such housing unit is to be constructed in urban and semi urban ..... X X X X Extracts X X X X X X X X Extracts X X X X
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