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2013 (5) TMI 87 - AT - Income TaxDeduction u/s 80IA - Joint Venture - Person u/s 2(31) - nature of works contract - as per the revenue the assessee is required to enter into an agreement with the Central Govt. or State Government or a local authority or any other statutory body for i) developing or ii) operating and maintaining or iii) developing, operating and maintaining a new infrastructure facility, which the assessee has not substantiated by furnishing a copy of the agreement entered despite affording several opportunities to the assessee. Held that:- There is no dispute with regard to the nature of business or the activities undertaken by the assessees. The dispute is only with regard to the identity of a person to whom this benefit of deduction u/s 80IA(4) can be allowed. The legislature have also used the word consortium of such companies, meaning thereby the legislature was aware about the object of formation of consortium and joint ventures. Generally the joint ventures or consortiums are formed to obtain a contract from the Government body for its execution by its constituents. If the constituents do not want to execute the work, there was no need to form a consortium. Therefore, mere formation of consortium for obtaining a contract should not debar the enterprises who in fact carried on the aforesaid classified business from claiming the deduction or exemption u/s 80IA(4).
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