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2015 (5) TMI 669 - HC - Income TaxEntitlement to deduction under Section 80-IA(4) - Whether the business activity of the respondent-assessee would fall within the ambit of the expression "Infrastructure Facility" as occurred in Section 80-IA of the Income-tax Act, in particular the Explanation appended to sub-Section (4) thereof? - Held that:- the assessee in the present cases though has erected bus-shelters, beautified the road median, erected street lights and footbridge in the specified place as 'per the specifications and erected advertisement hoardings for earning income from the said advertising business, it cannot be treated as infrastructure facility as explained in the Explanation of Section 80-IA of the Act. It was not an engineering or construction company that puts up public infrastructure. The assessee, which, eventually is an advertising company, is interested only to find out the best space at the best locations for advertisements. The assessee does not claim that he has any experience of raising/erecting infrastructure facility as contemplated by the Explanation of Section 80-IA of the Act. Thus the activities indulged by the assessee are part of its normal activities of advertising and publicity rather than one of infrastructure development. The business activities of the assessee do not involve (a) Development (b) Operating; and (c) Maintenance. For the purpose of its business, the assessee has taken up erection/construction of bus-shelter for its advertisement business. The circular issued by the CBDT makes it clear that the income eligible for deduction has to be arisen from the use of facility, for example, collection of toll from the road users. The said income has to be treated as income derived from the infrastructure facility. In the instant case, the assessee derives income only from the advertisement hoardings erected on the bus-shelters, road medians and the street light poles. Hence, the said income cannot be treated as income derived from the "infrastructure facility. The income earned by the assessee do not fall under Section 80-IA(4). We find that the order passed by the Tribunal is contrary to the intendment of the Act. The benefit under Section 80-IA can be extended only to those assessees who have developed infrastructure facility as defined under sub-Section (4) of Section 80-IA. In the instant case, the assessee has not developed road or a toll road, bridge, highway or a rail system. - Decided against assesse.
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