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2019 (3) TMI 1859 - AT - Income TaxDeduction u/s. 80IA - whether the toll fee so collected during the construction period should go to reduce the project cost or is eligible for deduction u/s. 80IA? - nexus between the development of infrastructure facilities and the toll fee collected - HELD THAT:- In the present case, admittedly, the assessee-company had not derived any profits from the activities of developing or operating and maintaining any infrastructure facilities. It is only in the process of developing infrastructure facilities. There is no nexus between the toll fee collected and the development of infrastructure facilities and therefore, the assessee company is not entitled to deduction u/s. 80IA(4) of the Act in respect of the toll fee collected during the concession period. The ld. CIT(A) had misdirected himself in directing the AO to allow the deduction u/s. 80IA of the Act. Therefore, we reverse the findings of ld. CIT(A) on this issue - Decided in favour of revenue.
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