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2018 (5) TMI 244 - AT - Income Tax
Disallowance of claim of deduction u/s.80IA(4) - assessee had developed the infrastructure facility and was engaged in operating the Road - Held that:- The obligations which had been assumed by the assessee under the terms of the contract were obligations involving the development of an infrastructure facility. Section 80-IA of the Act essentially contemplated a deduction in a situation where an enterprise carried on the business of developing, maintaining and operating an infrastructure facility. A port was defined to be included within the purview of the expression “infrastructure facility”. The obligations which the assessee assumed under the terms of the contract were not merely for on a BOT basis. On the fulfillment of the ten years, there was a vesting in the JNPT free of The finding that the assessee had developed the infrastructure facility and was engaged in operating the Road is entitled to the special deduction under Section 80 IA.
Disallowance u/s. 40(a)(ia) - TDS deposited before filing the return u/s.139(1) - Held that:- TDS deducted on payments have already been deposited before filing the return u/s.139(1) the same cannot be disallowed by invoking provisions of section 40(a)(ia) of the Act. From the record, we find that TDS up to February, 2008 have been duly deposited in the Government account on 29.8.2010, which is prior to the last date of filing the return u/s. 139(1). Accordingly, there is no justification on the part of the Assessing Officer to disallow payment u/s. 40(a)(ia) of the Act. The Assessing Officer is directed to delete the disallowance so made.
Disallowance of Labour Expenses - Held that:- Nature of assessee’s business and fact that labour payment have been made at site, we restrict the disallowance at ₹ 20,000/- in place of ₹ 2 lakhs made by the Assessing Officer. We direct accordingly.