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2017 (10) TMI 1314 - AT - Income TaxDisallowance of deduction u/s 80IA(4) - company has entered into an agreement with GSRDC - transfer the project in agreement with the constitutional body i.e. an agency as defined under section 2(e) of the Gujarat Infrastructure Development Act - Held that:- All kinds of infrastructure facilities referred in section 80IA(4)(i) of the Act, like Railways, ports, dams, bridges, roads, etc. are always owned by the Government and cannot be owned by private owners. So however, for an efficient execution and handling of such infrastructure facilities, the governments form a Special Purpose Vehicle (SPV) in the form of separate entity registered under the Companies Act, 1956. Hon’ble Supreme Court in the case of Som Prakash Rekhi (1980 (11) TMI 113 - SUPREME COURT OF INDIA) and Pradeep Kumar Biswas & Ors. (2002 (4) TMI 890 - SUPREME COURT) are fulfilled and SSNNL is liable to be considered as a ‘statutory body’ falling within the meaning of section 80IA(4)(i(b) of the Act. Similarly in this case, the entire project was clearly not only executed in agreement with GSRDC but the Gujarat Government directly was involved in the agreements for the project. Assessee has developed, operated and was to transfer the project in agreement with the constitutional body i.e. an agency as defined under section 2(e) of the Gujarat Infrastructure Development Act, 1999 under the Gujarat Government Act and also in direct and explicit agreement and approval of Gujarat government which has given land and allowed to collect toll fee. Assessee company fulfills the conditions as required under section 80IA(4) including Section 80IA(4)(i)(b) and has developed, operated and was to transfer the infrastructure facility and therefore, is eligible for the deduction claimed under the section. GSRDC is an extended arms of the Gujarat State and is entitle to eligible for deduction. - decided in favour of assessee.
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