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2017 (6) TMI 385 - AT - Income TaxEligibility to deduction u/s. 80IA - AO considering the status of assessee as a ‘works contractor’ disallowed the deduction - whether the assessee is a developer or a works contractor - Held that:- We find that the assessee stood successful in getting the bid for detailed survey, drawing, design and execution of sewerage project on turn-key basis for Zones-II,III,IV and V project at Jabalpur. The assessee JV was awarded the said project work by the Municipal Commissioner, Jabalpur. Thereby the assessee is a developer for the reason that the assessee involved in preparation survey, drawing, design and execution of sewerage project work. We find that the assessee made investments and development of infrastructure to support the various contract works. The assessee is also responsible in all respects for the procurement of labours, machinery, equipments, goods, materials for the said project work. The assessee is also responsible for the payment and supply of labour, water and electric charges usage for the project. The assessee is responsible for making the payments of labours and for supply of various items related to the said project. See CIT Vs. ABG Heavy Industries Limited [2010 (2) TMI 108 - BOMBAY HIGH COURT ] On perusal of the terms and conditions in the agreement, it is clear that the assessee was not a works contractor and was a developer and hence Explanation to section 80IA(13) does not apply. - Decided in favour of assessee.
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