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2016 (10) TMI 1369 - AT - Income TaxDisallowance of deduction u/s. 80IA(4) - deduction from the profits of developing the infrastructure facility - AO noticed that assessee has claimed deduction under the provision of section 80-IA(4) against its work contract income which the Assessing Officer said is not in accordance with law - HELD THAT:- Assessee entered into a contract with the government and the nature of work carried out shows that the assessee carried the work directly and it has employed various resources as stated above. Assessee has made huge investments in all kinds of resources for its business, namely plant and machineries, structures at sites, working capital, human resources, technical expertise etc. Assessee possesses its own technical knowledge of how to develop and lay roads, dams, bridges etc.. The assessee has purchased and employed its own materials for development and construction of the infrastructure facility. The entire planning of its business as also the work has been done by the assessee and not by the Government. Assessee can be said to be a developer and cannot be denied deduction from the profits of developing the infrastructure facility though it may not operate or maintain the same, particularly in view of the in insertion of the word or in sec.80-IA(4) of the act. In view of the facts and circumstances as stated above and legal legal findings as referred in the above judicial pronouncements, we considered that the assessee is entitled to a deduction under section 80IA(4) of the act, therefore, we uphold of the order of the learned CIT (A) - Appeal of the revenue is dismissed.
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