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2019 (3) TMI 477 - AT - Income TaxEligibility for deduction u/s 80IA(4)(i) - Manufacturing activity - whether the assessee is a developer or mere works contractor? - whether the assessee, engaged in construction of a dam cannot be said to be engaged in manufacturing or production of an article inasmuch as a dam is constructed and not manufactured? - CIT-A allowed the claim - HELD THAT:- We note that the contention of the assessee for eligibility for deduction under section 80IA(4) is fortified by certificate from the Superintendent Engineer, Municipal Engineering Directorate of the West Bengal Govt., in which it was clarified, that the assessee is developing a new infrastructure facility/project of public interest meant for Drinking Water Supply Project to improve health & sanitation and to provide civic amenities for local people. The Co-ordinate Bench of this Tribunal [2017 (3) TMI 1050 - ITAT KOLKATA] held on the similar facts that the assessee is not a work contractor but he is a developer therefore eligible to claim the deduction u/s 80IA(4)(i) of the Act. From the perusal of the terms and conditions in the agreement, it is abundantly clear that the assessee is not a works contractor. The assessee company is a developer. Thus, clearly the assessee is eligible for deduction under section 801A(4)(i) of the Act. No reason to interfere in the order of ld. CIT(A). Hence this ground of appeal of the Revenue is dismissed.
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