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

Appellant
VERSUS
Respondents

JUDGEMENT

M.K. Chaturvedi, Vice-President - (1.) ITA No. 1631(Mds)/2007: This appeal by the Revenue is directed against the order dated 27-3-2007 passed by the Commissioner(Appeals)-III, Chennai and relates to the assessment year 2002-03.
(2.) The solitary issue raised in this appeal relates to the allowability of deduction under Section 80IA of the Income-tax 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 80IA 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 consequenti notice under Section 148 was issued and the deduction claimed under Section 80IA was denied. The Commissioner (Appeals) reversed the order of the Assessing Officer. Being aggrieved the department is in appeal before us.
(3.) THE deduction under Section 80IA 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 first day of April, 1995.;


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