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TMI Blog2018 (11) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... and convenience, grounds of appeal for AY 2013-14 only are reproduced hereunder: "1. Whether on the facts and circumstances of the case, and in law, the Ld. CIT(A) erred in holding that all the projects being carried out by the assessee are infrastructural project and not work contracts and hence the assessee is eligible for deduction u/s.80IA ? 2. Whether on the facts and circumstances of the case, and in law, the Ld. CIT(A) erred in a holding that the provisions of deduction u/s.80IA(4) is applicable to constituent of the JV without appreciating that the assessee has not entered into an agreement with the Central Government or a State Government or a Local Authority or any other Statutory Body? 3. Whether on the facts and circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " 3. Brief facts of the case are that the assessee company undertook the works of a) Excavation of HNSS main canal including CM & CD works; b) Construction of single line BG tunnel including both approaches in between new Haflong - Harangajao station; c) Construction of single line BG tunnel in between Jiribam to Imphal in connection with construction of new railway project; and d) Dr. B.R. Ambedkar - Pranahita Chevela Sujala Sravanthi; Excavation of gravity canal including information of embankments. In its return of income, assessee claimed deduction u/s 80-IA(4) with regard to income from these projects. AO disallowed the same holding that the assessee is only works contractor and not a developer of the projects, and further that the wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee for Assessment Year 2012-13, vide order dated 17.04.2015, discussed in detail the various projects carried out by the appellant, as well as various judicial decisions on the issue. The relevant portion of CIT(A)-3's order is reproduced as under: "5.3 In the course of the appellate proceedings, the AR submitted that the appellant's claim of deduction had been upheld by the !TAT in its order for AY 2008-09 with regard to the construction of HNSS Main Canal KM 20 to KM 42. 5.4 With regard to the other projects, the AR submitted that these works of development of infrastructure facility had been undertaken by the appellant in consortium with other companies, that a company which carried on the work in consortium with o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). 5.7 The AR also submitted copies of extracts of the agreements executed with regard to these works. 5.8 I have considered the facts on record and the submissions of the AR. With regard to HNSS Main Canal KM 20 to KM 42, the appellant's claim of deduction u/s 80lA(4) was held allowable by the ITAT in its order in ITA No.414/Hyd/2012, dtd.17.06.2013 in the appellant's own case for AY 2008-09. Respectfully following the decision of the ITAT, the Assessing Officer is directed to allow deduction u/s 80IA(4) for this project. 5.9 One of the reasons for disallowance of the deduction for the other three projects is that the agreement for undertaking the projects had been entered into between a joint venture and the government and n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by its constituents and therefore deduction should be available to the constituents. 5.11. The facts in the appellant's case are identical. The work was allotted to a joint venture of which the appellant was a constituent. The work admittedly was executed entirely by the appellant and not by the other constituents of the joint venture or even by the joint venture in its own capacity. The fact that the appellant was merely a constituent of the joint venture to which the work had been entrusted cannot, therefore, be a reason for rejection of the claim of deduction u/s 80IA(4). 5.12 The Assessing Officer has also held that the appellant had not carried out the work itself but had in turn subcontracted the work relating to single lin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factors that had weighed with the ITAT in holding that the appellant was a developer and not a works contractor with regard to HNSS Main Canal KM 20 to KM 42 in its order for AY 2008-09. Following the ratio of the ITAT's decision, it is held that the other three projects were also eligible for deduction u/s 80IA(4). 5.14. In view of the above, the Assessing Officer is directed to allow the appellant's claim of deduction u/s.80IA( 4) for all the four projects". 7.1 As the projects being carried out during the year under consideration are the same as in A.Y. 2012-13, I have no reasons to deviate from the conclusions drawn by my colleague Commissioner of Income Tax (Appeals) in the assessee's own case for Assessment Year 2012-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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