ACIT., CENTRAL CIRCLE-1(1), HYDERABAD vs. NAVAYUGA ENGINEERING COMPANY LIMITED, VISAKHAPATNAM

ITA 458/HYD/2025Status: DisposedITAT Hyderabad30 April 2026AY 2018-19149 pages
AI SummaryDismissed

What were the facts?

The assessee claimed deduction under Section 80IA(4) for profits from infrastructure projects executed as part of a Joint Venture/Consortium. The Assessing Officer disallowed this, arguing the agreements were with the JV and not the assessee directly. The CIT(A) allowed the deduction.

What did the Tribunal hold?

The Tribunal held that the assessee acted as a 'developer' of infrastructure facilities, not merely a 'works contractor', due to its involvement in investigation, design, procurement, construction, and post-construction operations, along with bearing financial risks. Therefore, the deduction under Section 80IA(4) was admissible.

What were the issues?

Whether the assessee, as a constituent of a Joint Venture/Consortium, is eligible for deduction under Section 80IA(4) for infrastructure projects, and whether it qualifies as a 'developer' rather than a 'works contractor'.

Which sections of the Income-tax Act were involved?

Section 80IA(4),Section 153A,Section 132,Section 143(2),Section 139,Section 115JB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘A’ Bench, Hyderabad

Before: Shri Manjunatha G. & Shri Ravish Sood

Hearing: 03/02/2026

PER. RAVISH SOOD, J.M: The present appeals filed by the Revenue are directed against the respective orders passed by the Commissioner of Income Tax (Appeals) (for short, “CIT(A)” dated 18.01.2025 and 31.01.2025, which, in turn, arises from the respective orders passed by the Assessing Officer (for short, “AO”) under Section 153A of the Income-tax Act, 1961 (for short, “the Act”) dated 07.05.2021 and 29.04.2021 for the Assessment Year 2017-18 and Assessment Year 2018- 19, respectively. As the captioned appeals involve common issues, they are ACIT vs. Navayuga Engine

The order continues below.

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