TMI Blog2023 (11) TMI 503X X X X Extracts X X X X X X X X Extracts X X X X ..... the limited issue of claim of deduction u/s 80IA - assessee has duly furnished all the information relevant to AO and answered the various queries raised - AO was satisfied that the motor vehicle weighbridge along with toll road of 1 kilometre was integral part of the highway/toll road, thus accordingly accepted the claim of the assessee. In our view, the ld. PCIT has misconstrued the purpose for which the Government has entered into concession agreement for construction of motor vehicle weighbridge along with connecting road with the highway/toll road. The said infrastructure facilities have to be developed under Motor Vehicle Rules alongside the toll road so as to discourage unnecessary movement of heavy vehicles on the toll road an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the Act ). 2. The brief facts relevant to the issue are that the ld. PCIT observed from the assessment records that the return of income of the assessee was selected for complete scrutiny assessment on the following issue: Deduction claimed for Industrial Undertaking u/s. 80ID/8OIE10A/10AA. The ld. PCIT further observed that an assessment u/s. 143(3) read with Sections 143(3A) 143(3B) of the Act was completed on 09-02-2021 on the assessed income of Rs. 5,72,781/- accepting the claim of deduction of the assessee. The ld. PCIT further observed that the assessee was engaged in setting up of motor vehicle weighbridge check post under PPP Model with Government of West Bengal in multi-locations in West Bengal. He referring to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the construction of motor vehicle weighbridge was part of the toll road and the same was constructed under Public Private Partnership (PPP) mode with the Government of West Bengal on multi-locations in the State of West Bengal. The relevant part of the submissions of the assessee as made before the PCIT are reproduced as under: 5. It is the submission of the assessee that they are engaged in setting up of motor vehicle weighbridge check post under PPP Model with Government of West Bengal at multi locations in the State of West Bengal. On the merit of the claim, the assessee has drawn attention to Article 3 of the Concession Agreement entered into by the assessee with the Government of West Bengal. Article 3 of the Agreement defines th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and then sought reasons for claim of deduction under section 8OIA and the reply was perused and his order was based on his satisfaction, to which your honour has expressed a difference in opinion. 2.02 Sir, to our understanding, the basis of this nbotice is not covered in any of the four clauses of Explanation 2 to Section 263 - more importantly in clause (a) and (b) because the ITO has sought complete details of the project, flow chart and the nature and basis of claim under section 801A his notice under section 142(1) was quite exhaustive and also the final notice seeking clarification on the basis of claim under section 80IA. Your honour, therefore, it is not case where order has been passed without inquiries or verificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction u/s 80IA(4) of the Act. He accordingly set aside the assessment order dated 09.02.2021 and restored the matter to the file of the Assessing Officer for fresh assessment on this issue after considering the submissions of the assessee. Being aggrieved by the said order, the assessee has come in appeal before us. 5. We have heard the rival contentions and gone through the record. A perusal of the above submissions made by the assessee before the PCIT as well as further after going through the concession agreement produced by the assessee on the file and after going through the relevant records, we find that the return of assessee was selected for scrutiny on the limited issue of claim of deduction u/s 80IA of the Act. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e heavy vehicles are diverted to the motor vehicle weighbridge toll road and pass to the same and are charged toll charges as per Government Rules according to the weight of the vehicle and then are allowed to pass through the main highway/toll road. Under the circumstances, the motor vehicle weighbridge in, itself, is not a separate infrastructure project, rather, it is a part and parcel of the highway/toll road and is constructed for the purpose of passing and monitoring of movement of heavy vehicles on the toll road and collection of toll charges from the heavy vehicles and the said infrastructure facilities independently will be of no use, rather, it is part and parcel of the highway project. Therefore, in our view, the order of the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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