SMS PARYAVARNA JV,DELHI vs. ACIT, CIRCLE- 39(1), NEW DELHI

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ITA 4112/DEL/2017Status: DisposedITAT Delhi04 August 2021AY 2012-132 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee's work did not qualify as the development of an infrastructure facility as required for deduction under Section 80IA(4). Therefore, the disallowance of the deduction was upheld.

What were the facts?

The assessee, a joint venture, claimed deduction under Section 80IA for work related to sewer construction and sewage treatment plants. The Assessing Officer disallowed this deduction, and the CIT(A) upheld the disallowance.

What were the issues?

Whether the assessee's work in constructing sewer lines and treatment plants qualifies as development of an infrastructure facility for the purpose of Section 80IA deduction.

Which sections of the Income-tax Act were involved?

Section 80IA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: Sh. Kul BharatDr. B. R. R. Kumar

Hearing: 28.07.2021Pronounced: 04.08.2021

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the assessee against the order of the ld. CIT(A)-13, New Delhi dated 16.02.2017.

2.

Following grounds have been raised by the assessee:

“a) Deduction claimed by the assessee amounting to Rs.6,07,93,706/- should be allowable as deduction u/s 80IA of the Income Tax Act, 1961. b) Disallowance of expenses amounting to Rs.1,12,360/- should be set aside and the claim of expense be allowed.”

3.

The appeal in this case has been filed in the Tribunal on 21.06.2017. Notice of hearing were issued on 17.09.2020, 12.01.2021, 30.03.2021 and on 23.06.2021. The assessee was 2 SMS Paryavarna JV not present on any of the occasion. Today on the date of hearing held on 28.07.2021, there was no compliance from the side of the assessee. Hence, on going through the record before us, the matter is being adjudicated on merits of the case.

4.

The assessee has claimed deduction u/s 80IA(4) of the Act of Rs.6,07,93,706/-. The assessee is a contractor with Urban Improvement Trust, Kota to joint, test, commission and laying of the sewers and ancillary works for construction of manholes and restoration of roads. The work of the appellant includes construct, install, testing of sewage treatment plants and water pumping stations. The deduction claimed u/s 80IA(4) is available only to the developer of an infrastructure facility and work of the assessee cannot be treated as being involved in development of any infrastructure facility, we hereby decline to interfere with the well reasoned order of the ld. CIT (A).

5.

In the result, the appeal of the assessee is dismissed. Order Pronounced in the Open Court on 04/08/2021.

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