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2013 (7) TMI 952 - AT - Income TaxEnterprises engaged in infrastructure development - Deduction u/s 80IA(4) - Assessee is engaged in development of infrastructure facilities and has carried out certain contract works allotted by State Governments. He claimed deduction u/s. 80IA. AO concluded that assessee is not the owner of the infrastructure facilities and has executed the work merely as contractor. Accordingly, the deduction claimed u/s. 80IA was disallowed. - HELD THAT: - There is an intrinsic difference between developing an infrastructure facility and executing a works contract and deduction under said section would not be available in case of execution of works contract. If the assessee utilised its funds, its expertise, its employees and takes the responsibility of developing the infrastructure facilities, it cannot be considered as a mere works contract but has to be considered as a development of infrastructure facilities. Relying on the judgement of - NCC-ECCI (JV) VERSUS INCOME TAX OFFICER, WARD 6 (3) HYDERABAD [2013 (6) TMI 737 - ITAT MUMBAI], it was said that the contractor and the developer cannot be viewed differently. Every contractor may not be a developer, but every developer developing infrastructure facilities on behalf of the Government is a contractor. The principal idea behind granting deduction was to achieve rapid growth in infrastructure development with private participation, thus AO was ordered to re-examine the facts. Decision in the cases of - COMMISSIONER OF INCOME-TAX VERSUS RADHE DEVELOPERS [2011 (12) TMI 248 - GUJARAT HIGH COURT] and M/S. SUSHEE HITECH CONSTRUCTIONS P. LTD. (NOW KNOWN AS SUSHEE INFRA P. LTD.) VERSUS INCOME-TAX OFFICER, WARD 3(2), HYDERABAD [2013 (6) TMI 599 - ITAT HYDERABAD], relied upon.
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