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2022 (1) TMI 1115 - AT - Income TaxEligibility to claim section 80IA deduction pertaining to twenty nine irrigation and road projects - HELD THAT:- We find no merit in the assessee’s foregoing arguments supporting the CIT(A)’s action holding it partly eligible for the impugned section 80IA deduction relief. There is hardly any dispute about the assessee having undertaken irrigation and road projects from the concerned government departments in the nature of “works contract” only wherein it not only received mobilization advances in the initial stage but also there was no risk element involved as it had to carry out the construction of the irrigation project or and widening the road (supra) concerned as per the specific terms and conditions and prescribed specifications only. We notice in this factual backdrop that this tribunal’s recent co-ordinate bench’s decision in M/s. NEC NCC MAYTAS [2021 (5) TMI 1008 - ITAT HYDERABAD] has considered the “Explanation” regarding “works contract” u/s 80IA as held assessee has first of all been paid mobilization advances by the state government’s department on periodic basis, and, then only it executed the corresponding lift irrigation project works contract followed by its yet another claim of section 80IA of the Act deduction - We accordingly conclude both the learned lower authorities have rightly disallowed assessee's 80IA deduction claim involving varying sum(s) in their respective orders. The same stands confirmed. Section 80IA’s Explanation(s) is squarely attracted herein that even if the assessee itself is treated as the developer under sub-section (4) of the very provision, the impugned claim shall be hit by the foregoing Explanation as its business is in the nature of a “works contract” only. Reliance placed on all earlier orders (supra); not considering the statutory “Explanation(s)”, are not forced to be binding precedent in light of CIT Vs. B.R. Constructions [1992 (6) TMI 13 - ANDHRA PRADESH HIGH COURT] - Decided in favour of revenue.
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