ASSISTANT COMMISSIONER OF INCOME TAX Vs. INDWEL LININGS P LTD
LAWS(IT)-2008-6-5
INCOME TAX APPELLATE TRIBUNAL
Decided on June 13,2008

Appellant
VERSUS
Respondents

JUDGEMENT

M.K. Chaturvedi, Vice President - (1.) THIS appeal by the Revenue is directed against the order, dt. 27th March, 2007 passed by the CIT(A)-III, Chennai, and relates to the asst. yr. 2002-03.
(2.) The solitary issue raised in this appeal relates to the allowability of deduction under Section 80-IA of the IT Act, 1961. We have heard the rival submissions in the light of the material placed before us and the precedents relied upon. The assessee is engaged in undertaking contract works for insitu lining for water supply project and anti-corrosive lining. For the relevant assessment year, the assessee filed return admitting a total income of Rs. 64,81,590. It was processed under Section 143(1) of the Act. Subsequently, it was noticed that the claim for deduction under Section 80-IA was not maintainable, as the assessee was only doing contract work of insitu cement lining for water supply project carried out by Gujarat Water Supply and Sewerage Board. It was not developing by itself any infrastructure facility. Ex consequent] notice under Section 148 was issued and the deduction claimed under Section 80-IA was denied. The CIT(A) reversed the order of the AO. Being aggrieved, the Department is in appeal before us.
(3.) THE deduction under Section 80-IA is available to an assessee whose gross total income includes any profits and gains derived by an undertaking or an enterprise from the business of (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining any infrastructure facility which is owned by a company registered in India and it has entered into an agreement with the Central Government or a State Government or a local authority or any other statutory body for developing or operating and maintaining a new infrastructure facility on or after the 1st April, 1995.;


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