The Tax Publishers2020 TaxPub(DT) 1150 (Hyd-Trib) : (2020) 206 TTJ 0361

INCOME TAX ACT, 1961

Section 80-IA

Since assessee was not a developer but only operating and maintaining the water treatment system / water supply project and for procuring, supplying and erecting water treatment plant by virtue of job contract, assessee would not be entitled for deduction under section 80IA(4) unless he is a developer, therefore appeal of Revenue was partly allowed.

Deduction under section 80-IA - Fluoride Removal Unit and Arsenic Removal Units - Assessee being engaged in business of developing, operating and maintaining community water system and contamination removal water system -

Assessee was engaged in business of developing, operating and maintaining community water system and contamination removal water system and claimed deduction under section 80IA. AO disallowed the claim of deduction under section 80IA alleging that assessee was not developer in community water system but merely executing works contract on behalf of the State Government. Held: Provisions of section 80IA(4) and explanation (1) are crystal clear that assessee should be entitled for benefit of deduction if it is carrying on the business of developing or operating and maintaining or developing, operating and maintaining any infrastructure facilities. Assessee shall be entitled for deduction under section 80IA(4) with respect to operating and maintaining of the water treatment system / water supply project. It was also clear that assessee was not a developer but only operating and maintaining the water treatment system / water supply project. For procuring, supplying and erecting water treatment plant by virtue of job contract, assessee would not be entitled for deduction under section 80IA(4) unless he is a developer and from the facts of the case it is apparent that the assessee is not a developer. Thus, appeal of Revenue was partly allowed.

REFERRED :

FAVOUR : Partly in revenue's favour

A.Y. : 2012-13



IN THE ITAT, HYDERABAD BENCH

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