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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 ..... d out that while dismissing the Appeal of the revenue, this Court has taken into consideration the same order passed by the Tribunal which is impugned in this Appeal and on the basis of that, it was observed that nterim payment to the tune of estimated contract value in respect of the development work done for each month after retention and other adjustments were to be made, security deposit was to be paid by the assessee, there was a penalty for delay, procurement of the material was the responsibility of the assessee, procurement of land for camp, for shop, labour camp etc. also the employment of qualified engineers, action and compensation in respect of bad work, defect liability of the accidents to persons in relation to Workman Compens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance 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 Tribunal. 3. Learned advocates for both the sides submitted that the issue with regard to considering the respondent as developer of the infrastructure facility so as to become eligible for deduction under Section 80IA(4) is no more res intigra in view of the order passed by this Court dated 19th December, 2023 in Tax Appeal No.786 of 2023 for the A.Y. 2008-09, whereby the Appeal filed by the revenue is dismissed on the same question of law. It was pointed out that while dismissing the Appeal of the rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 gains derived by an undertaking or an enterprise from any business referred to in Subsection 4 of the Act as eligible business by providing deduction of an amount equal to the 100% of the profit and gains derived from such business for 10 consecutive assessment years. Subsection 4 of Section 80IA of the Act reads as under:- (4) This section applies to (i) any enterprise carrying on the business of (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining any infrastructure facility ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 being Developer of infrastructure facilities , accordingly the Assessee was asked to prove establish its capacity of Developer of infrastructure facilities , accordingly the Assessee has made a detailed submission narrating the following facts points to prove establish its capacity as a Developer of infrastructure facilities 3.13. Sub-clause 1 of Sub-section 4 of Section 80IA of the Act provides that Section 80IA applies to any enterprise carrying on the business of (1)developing, or (2)operating and maintaining or (3) developing operating and maintaining a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreements were entered into by the assessee was analysed and tendered documents containing the terms and conditions of the project were taken into consideration with respect to the following aspects as to the entire investment in the project was to be made by the assessee. Interim payment to the tune of estimated contract value in respect of the development work done for each month after retention and other adjustments were to be made, security deposit was to be paid by the assessee, there was a penalty for delay, procurement of the material was the responsibility of the assessee, procurement of land for camp, for shop, labour camp etc. also the employment of qualified engineers, action and compensation in respect of bad work, defect liab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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