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2018 (6) TMI 1577 - HC - Income TaxDisallowance u/s. 80IA(4) - infrastructure development projects for and on behalf of the Government or local authorities - assessee undertaken road development project, for which, it had entered into an agreement with Gujarat State Road Development Corporation which was incorporated by the Government for the special purpose - HELD THAT:- As in AYs 2009-10, 2010-11 and 2011-12 [2018 (5) TMI 1174 - GUJARAT HIGH COURT] confirmed the orders passed by ITAT deleting disallowance and deduction made by the AO u/s 80IA(4) stating condition( b) of subsection (4) of section 80IA requires the assessee to have entered into agreement with the Central Government or a State Government or a local authority or any other statutory authority. However, rigid interpretation of this provision as canvassed by the Revenue would only result into the assessee involved in genuine infrastructure development projects for and on behalf of the Government or local authorities would be denied the deduction merely on the ground that the State Government had created a nodal agency for working out the finer details and nittygritty of such infrastructure development. The purpose of creating such nodal agencies as well as the legislative intent of granting deduction to the assessee engaged in developing, maintaining or operating any infrastructure projects for Central or State Government or local or statutory authorities would frustrate. - Decided against revenue.
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