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2013 (6) TMI 813 - AT - Income TaxDisallowance of deduction u/s. 80IA - whether engaged in the business of development of infrastructural facility - whether a developer or mere works contractor - Held that:- assessee incurred expenditure for purchase of materials himself and executes the development work i.e., carries out the civil construction work - Government handed over the possession of the premises of projects to the assessee for the development of infrastructure facility - It is the assessee’s responsibility to do all acts till the possession of property is handed over to the Government - such activity is eligible for deduction under section 801A (4) of the Act. This cannot be considered as a mere works contract but has to be considered as a development of infrastructure facility - assessee has undertaken the development of the irrigation project within the scope of Explanation to section 80IA(4) - The project is a Turnkey project and it cannot form nor have a character of a works contract - Decided in favor of assessee
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