TMI Blog2020 (2) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... r treatment system / water supply project. It is also clear that the assessee is not a developer but only operating and maintaining the water treatment system / water supply project. The contract work entrusted to the assessee for procurement and supply of water treatment system / water supply project will obviously not fall under the ambit of section 80IA (4) which the Ld. CIT (A) had also made it clear in his order by disallowing the deduction for supplying Fluoride Removal Unit and Arsenic Removal Units and it is appropriate. For procuring, supplying and erecting water treatment plant by virtue of job contract, the assessee will not be entitled for deduction U/s. 80IA(4) of the Act unless he is a developer and from the facts of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed. The assessee is aggrieved by the order of the ld. CIT (A) because the Ld. CIT (A) had held that the assessee is not entitled for deduction U/s. 80IA of the Act with respect to Fluoride Removal Unit and Arsenic Removal Units. 3. The brief facts of the case are that the assessee is a private limited Company engaged in the business of developing, operating and maintaining community water system and contamination removal water system, filed its return of income for the AY 2012-13 declaring its income as ₹ 55,19,189/-. Thereafter, the case was selected for scrutiny under CASS and assessment was completed on 4/3/2015 U/s. 143(3) of the Act wherein the Ld. AO disallowed the claim of deduction U/s. 80IA of the Act and thereby m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... litres each. 4) The assessee undertakes maintenance during the said period of 10 years. 5) The assessee thus locates the place, prepares designs for construction of the building, undertakes construction of the building with its funds. 6) The assessee purchases the plant and erect at the place. All the necessary expenditure is incurred by the assessee for the above works out of it own funds initially and lter it would be reimbursed partly by the Government and partly through the sale of purified water during the period of operation and maintenance. It undertakes the financial risk and all other risks in the process of completing the erection of the plant; operation of the plant for purification of drinking water and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to civil contract. (ii) Predominantly the assessee had only supplied and installed water plant as per the contract. (iii) Finance Act 2009 had made it clear that deduction U/s. 80IA of the Act is not available for works contract. (iv) The assessee is not acting in the capacity as a developer. 6. On appeal, the ld. CIT (A) held the issue in favour of the assessee after examining the tender papers and terms of contract, however disallowed deduction with respect to Fluoride Removal Unit and Arsenic Removal Units because the assessee had only supplied those plants and therefore, it cannot be treated as infrastructure development. 7. Before us, the Ld. DR vehemently argued in support of the order of the ld. AO while as the ld. AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to operating and maintaining of the water treatment system / water supply project. It is also clear that the assessee is not a developer but only operating and maintaining the water treatment system / water supply project. The contract work entrusted to the assessee for procurement and supply of water treatment system / water supply project will obviously not fall under the ambit of section 80IA (4) of the Act which the Ld. CIT (A) had also made it clear in his order by disallowing the deduction for supplying Fluoride Removal Unit and Arsenic Removal Units and it is appropriate. For procuring, supplying and erecting water treatment plant by virtue of job contract, the assessee will not be entitled for deduction U/s. 80IA(4) of the Act unle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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