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2017 (1) TMI 1200 - ITAT KOLKATARevision u/s 263 - allowing the claim of the assessee for deduction u/s 80IA(4)(i) of the Act was erroneous and prejudicial to the interest of the revenue - Held that:- Assessee has furnished the copies of contracts the receipts from which were claimed as profits derived from the business of carrying out infrastructure development eligible for deduction u/s.80IA(4)(i) of the Act. We have already seen that the AO while completing the assessment u/s.143(3) of the Act by order dated 25.3.2014 has taken note of Form No.10CCB giving complete details of the profits derived from the business that is eligible for deduction u/s.80IA(4)(i) of the Act. He had raised specific queries with regard to allocation of proportionate head office expenses while arriving at the profits of the eligible business. Keeping in mind the past history of the Assessee’s case it cannot be said that the AO failed to deal the specific facts of the case as per law and has not scrutinized/verified the details in respect of the issues raised in the show cause notice u/s.263 of the Act. The liability that was assumed by the assessee under terms of the contract would be obligations involving the development of an infrastructure facility. The assessee has also in its employment technically and administratively qualified team of persons. If the above conditions are satisfied then it would not be correct to say that assessee is merely a contractor and not a developer. Without giving adverse finding on the above tests, the CIT could not conclude that the order of the AO was erroneous and prejudicial to the interest of the revenue. Further the CIT in the impugned order has also observed that the roads construed by the Assessee were not coming under expressway or highway category as mentioned in the Explanation to Sec.80IA(4)(i) of the Act, which defines Infrastructure facility for the purpose of claiming deduction under the aforesaid section. We are of the view that the definition covers any road including toll road. It need not be coming under expressway or highway category. - Decided n favour of assessee
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