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TMI Blog2024 (6) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... 18, wherein the following question of law is proposed. (a) Whether in the facts and circumstances of the case and in law, the learned ITAT has erred in deleting the disallowance of Rs.86,52,24,043/- made u/s. 80IA(4) of the Income Tax Act, 1961 by holding that the assessee is not a contractor but a developer of infrastructure facilities and is eligible for deduction u/s. 80IA(4) of the Income Tax Act, 1961? 2. The appellant revenue has proposed the question of law with regard to deleting disallowance made under Section 80IA(4) of the Act on the ground that assessee is not a contractor but developer of the infrastructure facility and is eligible for deduction under Section 80IA(4) of the Act as per the impugned order passed by the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duced below: "For the removal of doubts, it is hereby declared that nothing contained in this section shall apply in relation to a business referred to in sub-section (4) which is in the nature of a works contract awarded by any person (including the Central or State Government) and executed by the undertaking or enterprise referred to in subsection (1)."" 3.10. Thus there are concurrent findings of fact arrived at by the CIT (Appeal) as well as the Tribunal that the assessee has undertaken the development of infrastructure facility and is eligible to claim the deduction under Section 80IA(4) of the Act. 3.11. Section 80IA of the Act provides for deduction from the gross total income of the assessee which includes any profit and ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness referred to in sub-section (4) which is in the nature of a works contract awarded by any person (including the Central or State Government) and executed by the undertaking or enterprise referred to in sub-section (1).]" Both the explanations basically emphasizes on the non allowability of deduction u/s 801A(4) to an enterprise merely executing "works contract" awarded by what so ever person including the Central or State Government. Accordingly any person who executes the Infrastructure l'acility related work in capacity of a "Developer" shall only be allowed deduction u/s 801A(4) of the Act. Therefore, for claiming the deduction u/ s 801A(4) after the insertion of above explanation, the Assessee has to pass the test of " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Scope of Bid/ Development Work 1 Package-1: Chindwara- Amarwara-Narsingpur" Road Project: SH 47 103.3 Rehabilitation , Widening, Upgradation & Strengthening 2 Package-14: "Lakhnadon- Mandla-Dindori" Road Project: SH 11 & 40 149.8 18 The Appellant has drawn my attention to the relevant clauses of the Tender Documents in support of its contention of being "Developer of the Infrastructure Facilities" 3.14. The CIT (Appeal) has further examined as to whether the project assigned to the assessee was in capacity of a contractor or the same was executed as a developer with respect to the canal projects, agreements were entered into by the assessee was analysed and tendered documents containing the terms and conditions of the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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