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2017 (12) TMI 659 - AT - Income TaxDeduction u/s. 80IA - assessee is doing a works contract - whether assessee is a works contractor or a a developer? - Held that:- The assessee is doing contract work but that work is according to the requirement and specification of the customer and the same has been done by using materials purchase from third parties other than the customers. Thus, though the assessee is doing a works contract the same would not fall within the meaning of the word ‘works contract’ for the purpose of the Act due to the exclusion provided in the meaning of ‘work’ in section 194C of the Act. The issue raised by the Ld. CIT that the assessee is not doing the development work but is only doing the contract also does not stand to test as the assessee admittedly is developing the roads and railway lines and the bridges thereof. Development encompasses within itself contract work. The agreement between the assessee and the customer being the government is for the development of the infrastructure facility being roads and rail systems and bridges by participating in the tenders. Under these circumstances, we are of the view that the AO was right in law in granting the assessee the benefit of deduction u/s. 801A(4) of the Act. See ARSS Infrastructure Projects Ltd. Versus ACIT [2014 (1) TMI 847 - ITAT CUTTACK ] Also this Tribunal in assessee’s own case for A.Ys 2008-09, 2009-10, 2010- 11 and 2007-08 [2017 (6) TMI 776 - ITAT KOLKATA] held that assessee is a developer vide order dt. 07-10-2016. Also see case of M/s. GVPR Engineers Ltd &Ors [2012 (4) TMI 149 - ITAT HYDERABAD ] - Decided against revenue
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