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TMI Blog2017 (10) TMI 1506X X X X Extracts X X X X X X X X Extracts X X X X ..... f any merit. - ITA No. 562/PUN/2015 - - - Dated:- 16-10-2017 - Shri D. Karunakara Rao, AM And Shri Vikas Awasthy, JM Assessee by: Shri Ajit Athwale Revenue by: Shri Achal Sharma ORDER Vikas Awasthy, This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-I, Pune dated 31.10.2014 for assessment year 2011-12. 2. The brief facts of the case as emanating from the records are : The assessee is engaged in the business of developing, maintaining and operating infrastructure facility on BOT basis for Indore Municipal Corporation. The assessee has constructed foot-over bridges and road signages for Indore Municipal Corporation. The assessee claimed that footover bridges are covered under the expression bridge and road signages are covered in expression road . Thus, foot over bridges and road signages are part infrastructure facility and claimed deduction u/s. 80IA(4) of the Income Tax Act, 1961 ( hereinafter referred to as the Act ) in respect of both the structures. During the course of scrutiny assessment proceedings, Assessing Officer disallowed aforesaid assessee s claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. and the said signages constructed over the roads were a part and parcel of the roads and hence, the construction of the same amounted to development of roads and thus, the deduction u/s 80IA(4) was allowable to the assessee. b. The road signages form a mandatory part of roads as per the standards prescribed by the Ministry of Surface Transport (Roads Wing) and hence, there is no reason to hold that the construction of road signages does not amount to development of roads and thereby deny the deduction u/s 80IA(4) of the Act. c. The assessee had obtained composite contracts for construction of foot over 'bridges and constructing road signages thereon and at various stipulated locations and since, the foot over bridges were notified as infrastructure facility, the signages constructed thereon and at various stipulated locations could not be held to be in the nature of 'noninfrastructure' facility and therefore, the addition made was not justified. 6] The learned CIT(A) erred in relying on the decision in the case of CIT V. Skyline Advertising (P) Ltd. 269 CTR 289(KAR) without appreciating that facts are distinguishable such as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue by following the order of Coordinate Bench in the case of assessee s sister concern titled, Rajdeep Publicity Pvt. Ltd Vs. DCIT/ACIT in ITA No. 1782 1783/PN/2007 and 1414/PN/2008 for the assessment years 2003-04 to 2005-06 decided on 04.06.2010. The relevant extract of the findings of the Tribunal in assessee s case for assessment year 2010-11 are as under : 7. We find that the issue raised in the present appeal i.e. whether the erection of foot over bridges and installation of road signage fall within the definition of infrastructure facility as envisaged u/s. 80IA(4) of the Act has been considered by the Tribunal in the case of assessee s group concern M/s. Rajdeep Publicity Pvt. Ltd. The relevant extract of the order of Tribunal in the said case is reproduced here-in-under: 2. In A.Y. 2003-04, the assessee has raised various contentions with regard to its claim u/s. 80IA(4) of the Act and same was rejected by the A.O and it was upheld by the CIT(A). The assessee's stand is that the Pune Municipal Corporation in its tender documents in clause 2.1.1. says that Project of Pune Road Traffic Signages and Foot Over Bridges through private participation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid that without the signals, the road cannot be used. 4. As regards the submission of assessee that Section 80IA uses the word 'developing' as against Sec 80 IB(10) which uses the term the development and construction and therefore, for claim of deduction u/s. 80IA(4), there may be development of infrastructure without its construction. It was rightly found misplaced to the facts in the case of the assessee. As per the provisions of Sub Section (1) to Section 80 IA, where gross total income of assessee include any profit and gain derived by an undertaking or an enterprise from any business referred to Subsection (4), and deduction of an amount equal to 100% of profit and gain derived by the assessee shall be available for 10 consecutive years. According to the provision of Section 80IA (4), it apply to any enterprise carrying on business of (i) developing or (ii) operating or maintaining of, (iii) developing, operating and maintaining any infrastructural facilities. The Explanation to Section 80IA (4) exhaustively defines infrastructural facility in its clause (a) as road including toll road, bridge or a rail system. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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