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2017 (12) TMI 1204 - ITAT MUMBAIRevision u/s 263 - AO has not verified claim of deduction U/s 80IA on account of income from Railway Siding, Water project and captive power consumption and committed an error in passing the Assessment Orders - Held that:- The assessee company had claimed the deduction u/s. 80IA(4) of the Act in accordance of the provisions of the Act and the assessing officer has rightly allowed the same after making elaborate enquiry regarding the eligibility of assessee's claim, before specifically denying this deduction in respect of CER and allowing the same in respect of CPP, Water Supply and Treatment Plant and Rail System. The order of the Assessing Officer may not have dealt specifically on all these issues in the assessment order but that by itself is not sufficient reason to hold that the assessment order is erroneous and prejudicial to the interest of revenue. It is for the Ld.PCIT to point out as to what error was committed by the Ld. AO in taking a particular view. On a perusal of the agreement dated 16.01.2007 entered with South Western Railway, Hubli division for railway system we find clauses in the agreement are exactly identical to the agreement entered into by M/s.Ultratech Cements Limited for the railway siding in its premises. On analyzing the agreement and clauses thereon and the provisions of the Act it has been held by the Coordinate Bench in the case of M/s.Ultratech Cements Limited (2017 (12) TMI 1134 - ITAT MUMBAI) that the Railway System operated by the assessee is an infrastructure facility and entitled for the deduction u/s. 80IA of the Act. Section 80-lA was an instrument of legislative policy, conceived with a view to provide an impetus to private sector participation in infrastructural projects. We also find from the letter dated 04.03.2014 submitted to the Assessing Officer it was clearly stated that this facility is being operated and maintained by the assessee company. Therefore, it can be said that the assessee is operating and maintaining the infrastructure facility in the form of water supply project. Therefore, applying the same principles as was held in the case of Railway system we hold that the Water Supply Project operated and maintained by the assessee is an infrastructural facility and is eligible for deduction u/s. 80IA of the Act. - Decided in favour of assessee.
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