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2017 (6) TMI 776 - AT - Income TaxEligibility to deduction u/s. 80IA - assessee is a AOP [Joint Venture] - whether assessee was not a works contractor as treated by the AO or a a developer as per CIT-A - Held that:- We find that the assessee stood successful in getting the bid for engineering, procurement and construction of elevated corridor project at Hyderabad awarded for such construction of elevated corridor project in Hyderabad by the HUDA. Thereby the assessee is a developer for the reason that the assessee involved in preparation of design, superintending the labour and technical assistance and responsible for safety and security of the project site. The assessee is also responsible in all respect for the care and risk of the works, materials, goods, equipments (heavy & light ) and labour etc. and also for procurement of licenses, promotion and execution of project work. The assessee is also responsible for the payment of supply of labour, water and electric charges for the project. The assess was responsible and was to pay the cost of strengthening any bridge or altering or improving any road communication necessary for smooth execution of works. The assessee is responsible for making all arrangements for and paying all charges in connection with supply of electricity and water. The assessee was to carry out tests in accordance with law. 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. CIT-A was justified in directing the AO to allow the deduction u/s. 80IA of the Act as claimed by it. - Decided against revenue.
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