THE DY.COMMISSIONER OF INCOME TAX, PATAN CIRCLE,, PATAN vs. M/S. RANJIT BUILDCON LTD.,, UNJHA

The Revenue has raised identical grounds in all these appeals. As we are firstly taking up the appeal filed by the Revenue for the Assessment Year 2008-09 i.e.

“1. The learned CIT(Appeals) has erred in law and on facts in deleting the disallowance of deduction made by the AO of Rs.6,28,39,797/- under Section 80IA(4)(i) of the Act.

On the facts and circumstances of the case the Ld. CIT(A) ought to have upheld the order of the Assessing Officer. It is therefore prayed that the order of the learned CIT(Appels) may be set aside and that of the AO be restored to the above extent.”

The assessee is engaged in the business of Civil Construction and filed its original return of income on 30.09.2008 thereby declaring income of Rs.11,38,18,730/- after claiming deduction of Rs.6,38,87,090/- under Section 80IA(4)(i) of the Income Tax Act, 1961. The assessee filed first revised return of income on 10.01.2009 declaring total income at Rs.11,01,90,210/-. Thereafter, the assessee company again filed the second revised return of income on 31.10.2009 declaring total income of Rs.11,02,44,240/-. The same was processed under Section 143(1) of the Act on 31.03.2010. The case was selected for scrutiny and notice under Section 143(2) of the Act was issued to the assessee on 19.08.2009 which was served upon the assessee on 26.08.2009. Notice under Section 142(1) of the Act issued on 08.09.2010 which was served upon the assessee on 13.09.2010. Due to the change of the Assessing Officer again notice under Section 143(2) of the act was issued on 14.10.2010 and served upon the assessee on , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 3 of 34 26.10.2010. In response to notice under Section 143(2), Tax Consultant of the assessee attended the assessment proceedings from time to time and submitted the details as called for. The Assessing Officer observed that the assessee claimed deduction under Section 80IA(4) of Rs.6,38,87,090/- but the assessee did not fulfil the conditions laid down under Section 80IA(4) of the Act for allowing the deduction and, therefore, the Assessing Officer vide show cause notice dated 10.12.2010 called upon the assessee to explain why the claim for deduction under Section 80IA of the Act should not be disallowed. In response to the said notice, the assessee company furnished the reply dated 08.12.2010 and 20.12.2010. The assessee highlighted in the said reply that the assessee is doing the development of Infrastructure Faciality and, therefore, entitled for deduction under Section 80IA(4)(i) of the Act. The assessee also submitted that the assessee is dealing with the development work of Infrastructure Faciality and also given the details of the same which was carried out during the year. The assessee further submitted that project-wise accounts was not prepared as there was more than one Infrastructure Facility which was carried on by the assessee. The assessee further submitted that Section 80IA of the Act does not mention that separate project-wise accounts should be maintained to claim the deduction under Section 80IA of the Act. The assessee also submitted that the business of the assessee company is composite one wherein various Infrastructure Facility are carried out alongwith various non-infrastructure faciality and in fact the audit report in Form No.10CB has given all the details of 35 Infrastructure Facilities carried out during the year. The Assessing Officer after considering the assessee company’s reply observed that during the year under consideration, following work was done by the assessee company:

Canal of Vatrak Irrigation Division, M./s. Ranjit 11.06.2004 Work-Rajasthan Dungarpur Construction Co.

Chanakyapuri Bridge AUDA M./s. Ranjit 31.03.2006 Work Construction Co.

Dhabar Rail Bridge Western Railway M./s. Ranjit 23.01.2006 No.29, 30, 31, 32 Construction Co.

Dharmpur Valsad R&B, Valsa M./s. Ranjit 06.07.2006 Bridge Works Construction Co.

Dholay Jetty-Work Guj Maritime Board M./s. Ranjit 15.03.2005 Construction Co.

Dodiwada Bridge R&B Mehsana M./s. Ranjit 01.11.2001 Work Construction Co.

EWS Quarter Works AUDA Ranjit Buildcon 27.08.2007 AUDA Limited 11 Khijadia Dam Works Exe-Eng., Ranjit Buildcom 15.10.2007 Jamkhambhaliya Limited 12. Kotarpur Intekwell AMC Ranjit Construction 30.06.2004 works Co. 13 Minsar Dam Works Irrigation, Jamnagar Ranjit Construction 27.07.2002 Co. 14 Nana Bhadiya Narmada Water Ranjit Construction 03.11.2006 Bandhara Dam Co. Works 15 Nana Chiloda Road NHAI Ranjit Buildcon 18.07.2007 Work, NHAI Limited 16 NPMC Tahrad Slice- SSNNL. Ranjit Construction 21.10.2004 16 Co. 17 Okha Passenger Construction Division Ranjit Buildcon 10.10.2006 Jetty Work Byet Porbandar Limited Dwarka 18 Omkar AMC ROB AMC Ranjit Buildcon 21.06.2007 Work Limited 19 Patan Sihori Unjha R&B, Patan Ranjit Buildcon 18.08.2007 Road Work Limited 20 Pipe Line Work Guj. Water Supply Ranjit Construction 09.06.2003 Bhadar II Co. 21 Pipe Line Work Bhavnagar Maha Ranjit Buildcon 31.08.2007 Bhavnagar Seva Sadan Limited 22 Pipe Line Work P.H. Work Divi Ranjit Construction 15.03.2005 Dhasa Damnagar Porbandar Co. 23 Pipe Line Work JMC Muni. Corpo. Ranjit Construction 29.10.2005 New Bhavnagar Co. 24 Pipe Line Work JMC Junagadh Muni. Ranjit Construction 17.02.2004 Old Corp. Co. 25 Pipe Line Work Rajkot MC Ranjit Construction 08.12.2006 Krishna P.P. to Co. Gurukul RMC 26 Pipe Line Work Ribd Rajkot MC Ranjit Construction 08.12.2006 , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 5 of 34

The Assessing Officer further observed that the work contract received as per Sl. Nos.1, 3 to 9, 12-14, 16, 20, 22-32 & 34-35 by M/s Ranjit Construction Company who was a separate entity and was assessed as a firm. The Assessing Officer observed that the assessee company was incorporated as Registered Company on 14.12.2006 under the name of “Ranjit Buildcom Limited” and started its business activities as company whereas the initial agreement was taken place between various Departments/Bodies etc. with Ranajit Construction Company which was a firm. The Assessing Officer held that the first condition of Section 80IA(4) clearly states that Enterprise should be owned by a Company and only a company can start developing, operating & maintaining any Infrastructure Project. The Assessing Officer further observed that the assessee has parted on this front as three major work was completed as a firm. The Assessing Officer further observed that on verification of documents filed in respect of the 35 work contracts, the assessee has entered into agreement only in the capacity of a “Contractor” and contract receipt is not qualified for the deduction under Section 80IA(4)(i) of the Act as per the provisions of Section 80A(4)(i)of the Act. The income should be derived from the Enterprises/Undertaking for developing, operating & maintaining or , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 6 of 34 developing, maintaining & operating the project. The Assessing Officer held that any person who execute the work contract entered into with undertaking or enterprises shall not be eligible for the deduction under Section 80IA of the Act and thus further concluded that the assessee company is not entered in BOT, BOOT &BOLT System, therefore, not entitled for deduction under Section 80IA(4)(i) of the Act and thus made disallowance of Rs.6,38,87,090/-. The Assessing Officer also made addition of Rs.36,280/- as late remittance of Employees Contribution to the PF and disallowance of interest on Income Tax amounting to Rs.11,804/-.

Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee.

The Ld. DR submitted that the CIT(A) was not right in deleting the disallowance of deduction made by the Assessing Officer at Rs.6,28,39,797/- under Section 80IA(4)(i) of the Act. The Ld. DR submitted that the assessee company was registered as company on 14.12.2006 and the documents related to the work contracts were entered by the firm. The Ld. DR further submitted that separate project-wise report was required under Sub-sclause-2 of Rule 18BBB of the Income Tax Rules, 1962. The Ld. DR further submitted that the assessee company has entered into a contract agreement as a “Contractor” and earned income as “Contract Receipt” and, therefore, its income is not entitled for deductions under Section 80IA(4)(i) of the Act. The Ld. DR further submitted that the TDS certificates issued by Tax deductor i.e. Municipal Corporation, Irrigation Department, Road & Building Division, Salinity Control Division wherein the nature of work shown as contract and tax deducted under Section 194C of the Act which proves that the assessee company is a “Contractor” and not as a “Owner” of the project/enterprises. The Ld. DR further submitted that the assessee company has not entered into any agreement as a owner of the project/enterprises but entered into agreement as a work contractor in all 35 works done by the assessee company. The Ld. DR further submitted that the list of projects attached with form no.10CCB relevels that the assessee company has got the work by way of filing , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 7 of 34 tender with various Departments of the Central/State Governments/Local Authorities/Boards etc. with the terms & conditions that work was assigned to the assessee to complete the work within the stipulated time i.e. 12 months only and thus the question of ownership of the company on enterprise is not established. The Ld. DR further submitted that the assessee has not fulfilled the first condition under Section 80IA(4) wherein the enterprise should be owned by a company. In assessee’s case, the work contract received was by M/s. Ranjit Construction Company who was a separate entity and was assessed as a firm and the present assessee company was incorporated as registered company on 14.12.2006 under the name of Ranjit Buildcon Limited. The Ld. DR further submitted that in these 35 work contracts the assessee company entered into an agreement only in the capacity of a Director under contract receipt is not qualified for the deduction under Section 80IA(4)(i) of the Act. The Ld. DR further submitted that in the instant case, the assessee company has no right to operate and maintain infrastructure and, therefore, the deduction which is related to enterprise/undertaking for developing, operating & maintaining or developing, maintaining & operating the project will not come under the purview of Section 80IA(4)(i) of the Act as the assessee company is dealing with work contrafact only. The Ld. DR further submitted that the Assessing Officer has elaborately verified all the evidences brought on record and, therefore, the CIT(A) was not right in deleting the disallowance in respect of deduction under Section 80IA(4)(i) of the Act.

The Ld. AR submitted that the assessee in fact has given detailed reply thereby stating that the assessee since the beginning was carrying on the business of infrastructure development such as construction of Dam, Bridges etc. and have maintained workwise accounts in its books of account. The work receipt of each work is credited to respective work account and expenses pertaining to each work are debited to respective work account. The Ld. AR further submitted that the assessee’s books of account are audited as per Companies Act and Income Tax Act. The Ld. AR further submitted that the assessee is dealing with development of infrastructure and, therefore, the assessee is entitled for deduction under Section , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 8 of 34 80IA(4)(i) of the Act. The Ld. AR particularly pointed out that the assessee company is a limited company registered in India and the assessee fulfilled all the conditions laid down in the said Section for allowing the deduction. The Ld. AR summitted that the development of work of Infrastructure faciality is such that project-wise account cannot be prepared as there was more than one Infrastructure facility were carried on and there is no specific provisions under Section 80IA of the Act to maintain separate project-wise accounts. The Ld. AR further submitted that there is no bar in the provisions of Section 80IA of the Act that there should be no other income because income from Infrastructure faciality because the word used in gross total income and income from Infrastructure facility is to be computed under Income Tax Act. The Ld. AR further submitted that the assessee filed detailed working of income from Infrastructure Facility carried out by the assessee company during the year and whatever direct income and expenditure are there, the same was considered as such and in respect of indirect expenditure proportionate amounts were considered. The Ld. AR also pointed out the audit report in Form No.10CCB thereby stating that all the 35 Infrastructure facilities were done by the assessee during the present Assessment Year. In fact, the assessee submitted Annexure-A appended to the said audit report thereby giving details of list of 35 Infrastructure faciality alongwith copy of work order. In fact, the Assessing Officer at no point of time held that the assessee was not carrying out any Infrastructure facility either in developing or maintaining. The assessee entered into agreement with all the Government Authorities and Local Boards wherein the work order/letter of intent was issued as per the requirement of the Infrastructure Facility, its development and maintenance as envisaged in the tender documents which is the governing agreement between the Central Government/State Governments/Local Boards or any other Statutory Bodies for developing, maintaining and operating Infrastructure facilities. Though at the time of assessment proceedings the copy of agreement from the various Government Authorities were not supplied but the same was called upon from the Government Authority by the assessee and asked for the time before the Assessing Officer during the assessment proceedings to file the same at the later stage. The Ld. AR , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 9 of 34 further submitted that all the tender documents as well as the copy of work orders includes the risk and the penalty provisions which itself speaks that the assessee after developing and operating the infrastructure facility and when the same is completed still has to maintain such infrastructure facilities for further specific period which started from two years to 5 years in each of all these 35 infrastructure facilities and if it is not maintained and if there is any loophole in the infrastructure facility, the assessee company is responsible for the same and will be penalised as per the tender agreement as well as work contracts. In fact, there is penalty schedule mentioned in cases of lapses on the part of the assessee company. Thus, no other authority but the assessee himself has an obligation to not just develop the Infrastructure Facility or operate the infrastructure facility but also to maintain such infrastructure facility which itself shows that the assessee is fulfilling all the conditions as envisaged under Section 80IA(4)(i) of the Act.

We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(A) has taken cognisance of all the tender agreement as well as the work contract including the risk factor as envisaged upon the assessee company and thereafter given a detailed finding. The Ld. AR relied upon the following decisions:-

The above decisions categorically mention that when the assessee is developing the infrastructure facility that of maintaining at its own risk as well as when the accounts were also presented including all the projects of infrastructure facility, the assessee has fulfilled all the requirement as envisaged under Section 80IA of the Act and, therefore, there is no need to interfere with the findings of the CIT(A). Furthermore, the decision of the Tribunal in the case of M/s. N.C.C. – M.S.K.E.L. (J.V.) vs. ITO, the Tribunal has dismissed the appeal of the assessee but in those cases where the risk factor of the maintenance of the infrastructure facility was not on the assessee therein and in fact the work contract is not covered the risk factor of the direct impact on the assessee therein, therefore, the said decision will not be applicable in the present assessee’s case. The assessee in the present case has categorically given all the 35 contracts including the tender agreement which was quoted by the CIT(A) in paragraph no.5.1 at page nos.5 & 6 of the order and categorically held that the 12 infrastructure facilities, defect liability period and maintenance was upon the assessee which varied from 6 months to 36 months as given in the Paper Book before the CIT(A). The CIT(A) also, while looking into each of the project, has categorically mentioned that the assessee is a company which came into existence on conversion of partnership firm into Limited Company under Chapter-IX of the Companies Act, 1956 w.e.f. 13.12.2006. Prior to that, the partnership firm under the name and style of Ranjit Construction Company was carrying on the business of developer/construction etc. The company had converted from a firm into a company limited by shares by operation of law under Part-IX of the Companies Act, 1956 as going concern and continued the partnership business including all its assets, moveable and immovable, rights, debts and liabilities in connection therewith and had so converted before the commencement of the previous year has to be in question but not the year from 2007-08 onwards. The observation of the CIT(A) in respect of all the projects has categorially mentioned that out of 35 projects only 17 projects have been claimed to have been yielded profit and other projects according to the assessee have yielded loss. The loss has been reduced from the eligible profit, therefore, the same was not taken into account. The CIT(A) while describing agreements and its terms has , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 11 of 34 categorically taken into account the specific projects thereby mentioning that the assessee was from the very beginning involved in developing, maintaining the infrastructure with Agencies of that of Central Government, State Government, Local Authorities etc. and the assessee held responsible for any damage or loss of the property for 59 months and defect liability period of 2 months specifically in some of the projects which envisage that the assessee is sole infrastructure developer in the present scenario in the projects where CIT(A) has observed so and there was no other third party involved in these projects for conducting the sub- delegation of the work awarded to the assessee company. The maintaining of the said infrastructure in each of these 17 projects though deferred but the maintenance is more than 30 months that means almost more than two years and, therefore, the assessee has established that the assessee was the sole developer in the present contracts which are related to the developing, operating and maintaining the infrastructure facilities as envisaged under Section 80IA(4)(i) of the Act. It is further seen that the CIT(A) has examined all these aspects and has given a categorical finding including all the projects involved and, therefore, there is no need to interfere with the finding of the CIT(A). Hence, appeal filed by the Revenue being for Assessment Year 2008-09 is dismissed.

BRIDGE Construction of approaches for the 15,60,04,600/- 73,89,737/- railway over bridge across Ahmedabad – Mumbai B.G. Railway line at Rly. Km. 394/10-12 between station Vishwamitri and Vadodara including bridge across Vishwamitri River on 40.0 M wide Road connection Akota – Dandiya Bazar excluding Railway portion at Vadodara Agreement date 07.05.2010.

BRIDGE Design and construction of elevated 24,56,34,868/- 3,73,08,859/- road over KKV and Indira Gandhi Circle along Rajkot Ring Road – BRTS blue corridor Rajkot, Gujarat Agreement dated 10.11.2008

Canal Constructing Narmada Main Canal 1,84,37,642/- 12,93,736/- Slice No.16 Ch 433.647 km to 445.692 km Agreement dated 15.09.2004 8. ROB Construction of ROB in lieu of LC 2,24,79,754/- 78,02,954/- No.5/A on Ahmedabad - Himmatnagar MG Railway Line near Omkar Mill at Asharwa, Ahmedabad, Agreement dated 02.06.2007 9. Pipe Line Providing and pushing laying casting 23,22,233/- 7,43,245/- Work pipe at different locations of Railway crossing for Junagadh Water Supply Scheme.

Pipe Line EPC Turnkey work of providing, 2,41,41,974/- 93,57,002/- Work lowering and jointing of 1000/700/600 MM dia. BWSC/MC Transmission Main Incl. design and construction of water treatment plant, pumping machinery, ESR-sump etc. at Tarsamiya under Bhavnagar Water , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 19 of 34 Supply Scheme based on Narmada Pipe Line Agreement dated 27.08.2007.

Pipe Line Providing lowering laying and jointing 5,92,248/- 3,17,760/- Work DI Pipe Line Work ward 17-18 (RMC) Agreement dated 01.01.2006 12. Pipe Line EPC Turnkey project for work of 1,92,38,595/- 14,81,050/- Work providing, lowering and jointing of 1150 mm dia. M.S. Transmission Main Incl. design 7 construction of Water Treatment Plant, Pumping Machinery, ESR, GSR etc. at Raiyadhar, under Rajkot Water Supply Scheme Agreement dated 03.06.2007.

Pipe Line Design Build Contract with operation 1,22,07,499/- 19,16,201/- Work and maintenance for two years for bulk MS and DI Pipe line U/G Sump, Office Building, Compound wall and Pump House with canal off take arrangement for integrated Water Supply Scheme Phase-II, Part-I based on Sardar Sarovar Canal based Agreement dated 15.03.2008.

Pipe Line Providing lowering laying and jointing 59,26,913/- 7,12,226/- Work of PSc pipe 500 mm dia 12 kg/sq. cm (Dilbahar ESR to Viran Circle Bhagvati Circle towards Sardar Patel Institute) Agreement dated 01.01.2009.

ROB Rebuilding of Bridge No.401 (16 x 22,86,819/- 4,65,846/- 18.30 m + 1 x 20.4 m span) at km. 283/29-239/1 between Navsari and Maroli stations of Virar – Surat Section of Mumbai Division by constructing 18 x 18.30 in PSC girders on RCC pile foundations on permanent diversion Agreement dated 10.05.2005.

ROB Providing substructure on Pile 0.0 11,11,268/- Foundations for Br. No.96(11 x 30.50 m) through girder at Km.78/10-79/1, Bar. No.102 (2 x 18.30 m) Plate Girder at 82/8-9 Bro. No.103 (4 x 6.10 m) PSC slab at Km 83/12-13 Br. No.112 (3 x 50.5 m) through Girder at Km.90/11-97/1 between station Suskal & Puniyavant on Pratapnagar- Chhotaudepur section in connection , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 20 of 34

Pipe Line Construction, Implementation of 8,75,000/- -8,602/- Work intake well, water treatment plant, rising main RCC, ESR sumps and Distribution pipeline network including civil works based on Bhadar-II dam under Bhadar-II regional water supply scheme in Junagadh and Porbandar District on turnkey basis. Agreement dated 19.01.2004. 8 Pipe Line Construction of ESR – GSR work at 94,40,111/- -92,813/- Work work ward 17 (RMC) Agreement dated 27.08.2005 9. BRIDGE Construction of foundation and sub 1,67,28,384/- -15,35,868/- structure (concrete) of Mahi Bridge No.226 at km 616/21-37 between stations Bhairogarh and Raoti on Godhra – Ratlam Section of Ratlam Division of Western Railway on permanent diversion. 10 Bridge Rebuilding of double line Bridge 29,95,652/- -86,318/- No.571 (3 x 18.30 m span) at Km 384/6-8 between Varnama – Makarpura Section on Surat- Vadodara Section, Double line Bridge No.681 (16 x 18.30 m span) at Km. 457/2-6 between Nadiyad – Gothaj stations and Double line Bridge No.686 (2 x 18.30 + 13.72 m span) at Km 462/6-8 between Gothaj and Mahemdabad Stations on Vadodara – Ahmedabad sections of Vadodara division and double line Bridge No.711 (3 x 18.30 +1 x 13.70 m span) at Km 483/20-26 between Geratpur – Vatva stations on Vadodara Ahmedabad Sections of , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 22 of 34

BRIDGE Construction of Approaches for the Railway 18,39,95,500/- 2,06,83,260/- Over Bridge Across Ahmedabad – Mumbai B.G. Railway Line at Rly. KM. 394/10-12 between Station Vishwamitri and Vadodara including Bridge across Vishwamitri River on 40.0 M wide Road connecting Akota – Dandiya Bazar excluding Railway Portion at Vadodara under SJMSVY on item rate basis

BRIDGE Construction of ROB in lieu of level crossing 16,79,98,411/- 3,89,46,042/- on B.G. Railway Line along Gondal Road and Mavdi Road, Rajkot.

BRIDGE Construction of elevated corridor from Swami 29,51,13,659/- 6,03,71,317/- Vivekanand Bridge to Gujarat College via. M.J. Library in Ahmedabad 4. BRIDGE Design and construction of elevated road over 8,20,46,748/- 1,79,22,416/- KKV and Indira Gandhi Circle along Rajkot Ring Road – BRTS blue corridor, Rajkot, Gujarat Agreement dated 10.11.2008

ROB Construction of ROB in lieu of LC No.5/A on 86,14,840/- 47,14,971/- Ahmedabad Himmatnagar MG Railway Line near Omkar Mil at Asharwa, Ahmedabad, Agreement dated 02.06.2007.

BRIDGE Construction of Flyover Bridge at Parle Point 2,29,52,739/- 2,17,39,733/- Junction on Surat Dumas Road, Surat Agreement dated 24.10.2008.

Pipe Line Providing and laying MS/DI pipeline from 2,72,74,616/- 27,09,610/- Work Sarkhej Gandhinagar Highway/Kali Branch Trunk Main Line to Tragad, Charodi, Jagatpur, Chenpur for Westers Urban Area of AMC. Agreement dated 02.02.2010.

ROB Construction of foundation and sub structure 0.00 92,71,509/- (concrete) of Mahi bridge no.226 at Km. 616/21-37 between stations Bhairogarh and Raoti on Godhra – Ratlam Section of Ratlam Division of Western Railway on permanent diversion.

ROB Providing substructure on Pile Foundations for 92,08,823/- 49,48,168/- Br. No.96(11 x 26.50 m) through girder at Km.78/10-79/1, Bar. No.102 (2 x 18.260 m) Plate Girder at 82/8-9 Bro. No.103 (4 x 6.10 m) PSC slab at Km 83/12-13 Br. No.112 (3 x 26.5 m) through Girder at Km.90/11-97/1 between station Suskal & Puniyavant on Pratapnagar- Chhotaudepur section in connection with Gauge Conversion work of Pratapnagar- Chhotaudepur Section Agreement dated 23.03.2007.

Bridge Construction of Railway Over Bridge at Rly. 14,48,55,960/- 2,92,63,468/- Culvert No.440 A Near Anjana Sewage , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 24 of 34

ROB Construction New Fly over bridge on Gotri 0.0 15,08,548/- Main Road at Harinagar Junction Vadodara

BRIDGE Work of Dismantling and Reconstruction one 3,65,953/- -24,935/- span of SHRB at ch.3625 m. of S.B.C.

ROB Construction of Railway over Bridge across 5,83,70,403/- -45,90,899/- Vadodara-Jambusar (N.G.) Railway line at Rly KM2/3-4 in lieu of Rly. crossing No.2 between station Vishwamitri and Jambusar on 40.00 mt. wide ring road at Kalali-Vadodara under JnNURM, on item rate basis. Agreement dated 05.05.09.

ROB Construction of ROB in lieu of LC No211/A on 10,47,66,232/- -17,07,148/- Mehsana – Vishnagar Link Road at 915 KM 13-14 and 6/0 8. BRIDGE Construction of 2 nos. Road under bridge by 1,06,83,486/- -3,83,404/- box pushing technique i.e. consisting of 2 nos. of RCC boxes near Rajasthan Udyog Nagar and Azadpur Railway Station on DLI-UMB section.

Pipe Line Supply, installation, testing & commissioning of 0.0 -13,40,708/- Work 450 mm dia GRP Pipe Distract Rajkot (Jetpur Group) Agreement dated 23.03.10.

Pipe Line EPC Turnkey work of providing, lowering and 14,60,260/- -68,412/- Work jointing of 1000/700/600 MM dia. BWSC/MC Transmission Main Incl. design & construction of water treatment plant, pumping machinery, ESR-sump etc. at Tarsamiya under Bhavnagar Water Supply Scheme based on Narmada Pipe Line Agreement dated 27.08.2007

Pipe Line EPC Turnkey project for work of providing, 9,11,250/- -5,04,613/- Work lowering and jointing of 1150 mm dia. M.S. Transmission Main Incl. design 7 construction of Water Treatment Plant, Pumping Machinery, ESR, GSR etc. at Raiyadhar, under Rajkot Water Supply Scheme Agreement dated 03.06.2007.

Pipe Line Construction of design build contract with 0.0 -16,20,752/- Work operation and maintenance for 3 years for bulk MS and DI Pipe line U.G. Sump, Office Building, Compound wall 7 Pump House with canal off take arrangement for integrated Water Supply Scheme Phase-II (Part-A) based on Sardar Sarovar Canal based Dist: Surendranagar.

BRIDGE Construction of Four Lane Flyover at Soni ni 0.0 -80,00,371/- Chali Junction at Junction across Narol- Naroda national High Way.

BRIDGE Construction of Railway Under Bridge in lieu 3,66,66,014/- -5,85,855/- L.C. No.522/A on Ahmedabad – Delhi B.G. Railway Line Near Unjha Town 15. BRIDGE Construction of Winding of Bridge near Urmi 6,74,71,500/- -16,84,731/- School over Vishwamitri River Total … 38,72,78,316/- 3,13,95,099/- The CIT(A) has given detailed finding related to all the 19 infrastructure facilities in consonance with the order of the Assessment Year 2011-12. After verifying all the documents including that of the 19 infrastructure projects which are reproduced in para no.4.2 thereby giving the details of projects which yielded the profit and the project which incurred the losses. The CIT(A) dealt with the issues in consonance with the earlier Assessment Year but after looking to the same, it appears that the assessee’s involvement as developer in the said infrastructure facilities was direct and maintenance and the risk factor was directly upon the assessee and the assessee was responsible solely for the same. Hence, the assessee is a developer in these works carried for different Government Agencies and, therefore, is eligible , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 26 of 34 for deduction under Section 80IA(4) of the Act. Thus, appeal filed by the Revenue being for A.Y. 2012-13 is dismissed.

BRIDGE Construction of Rob in lieu of Level 22,99,05,458.00 6,69,26,212.35 Crossing on B.G. Railway line along Gondal Road and Mavdi Road, Rajkot dated 12.09.08.

BRIDGE Construction of elevated corridor from 29,55,29,883.00 5,00,92,991.18 Swami Vivekanand Bridge to Gujarat College via. M.J. Library in Ahmedabad City. Agreement dated 12.12.11. 6. BRIDGE Construction of three lane flyover at 9,39,261.00 8,87,815.65 Isnapur Junction across Naroda-Narol Junction, Ahmedabad. 7. BRIDGE Construction of Railway over Bridge 11,42,38,835.00 6,56,64,438.82 across Vadodara-Jambusar (N.G.) Railway line at Rly. KM. 2/3-4 in lieu of Rly. crossing No.2 between station Vishwamitri and Jambusar on 40.00 mt.

BRIDGE Construction of 2 x 2 lane split Flyover 14,16,85,832.00 3,45,34,396.12 Bridge at Vishwakarma Junction Middle Ring Road crossing canal from Puna Jakatnakar to Simada for Surat BRTS Phase-II.

BRIDGE Supply, installation, testing & 2,94,13,148.00 28,00,553.57 commissioning of 450 mm dia GRP Pipe Distract Rajkot (Jetpur Group) Agreement dated 23.03.10 10. BRIDGE EPC Turnkey work of providing, lowering 1,36,65,470/- 1,29,22,662.27 and jointing of 1000/700/600 MM dia. M.S. dia. BWSC/MS Transmission Main Incl. design & construction of water treatment plant, pumping machinery, ESR, GSR etc. at under Bhavnagar Water Supply Scheme based on Narmada Pipe Line sources.

ROAD Widening & Str. of Mehsana Bodala 70,90,413.00 44,884.29 Modhera Road Km. 0/0 to 25/200 Section 4/0 to 25/200 12. ROAD Construction of Mehsana Buye pass Km. 31,50,42,861.00 35,69,503.97 0/0 to 16/8 13. ROAD RESURFACE OF VARIOUS MAIN ROAD 10,97,35,180.00 1,45,971.77 OF AMC RTO to Vadaj Circle, Income to Paldi, Vasana APMC Market TOTAL 1,89,81,22,917.00 27,38,21,165.85 In addition to the above infrastructure facilities we have carried on following work of infrastructure facility in which no net profit – income was earned but loss was incurred.

BRIDGE Construction of high-level bridge with 6,37,261.00 -11,897.74 approached road near village Bhaskarpura on Viramgam Lakhtar Road, Agreement dated 15.03.2010 , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 28 of 34

BRIDGE Protection to the down stream slope of 1,21,80,607.00 -3,83,333.39 combined approach embankment by boulder pitching/Sausage crates in apran etc from Ch 21.095 to 22.800 km. including construction of RCC Box Culvert, “V” notch drain, catch pit, retaining wall and other ancillary works and protection of the up steam face of the embankment on the South Bank in connection with construction of Bogibeel Bridge Project Agreement No. CON/ Bogibeel/172 dated 14.06.2010.

BRIDGE Construction of a major Bridge including 2,23,10,089.00 -18,01,137.23 approaches across river “Demi” on missing link of Wankaner Amarsar Mitana Road District Rajkot.

BRIDGE Construction of Fly Over Bridge at Gotri -2,54,667.68 Main Road Harinagar Junction Vadodara.

BRIDGE Construction of ROB in lieu of LC No.211- 9,22,86,189.00 -8,58,053.60 A on Mehsana-Visnagar Link Road at KM915/13-14 & 1/6-7 7. BRIDGE Construction of Road under bridge by box 12,81,986.00 -81,865.12 pushing technique i.e. 1) consisting of 2 nos. of RCC boxes with internal dimensions (opening) of 8.4 m x 5.50 m each, under running railway track in lieu of level crossing No.7-Spl at Km.

BRIDGE Construction of ROB in lieu of L.C. No.5/A 16,52,329.00 -73,809.20 on Ahmedabad - Himmatnagar MG Railway Line near Omkar Mil at Asharwa, Ahmedabad, Agreement dated 02.06.2007.

BRIDGE Construction of foundation and sub 1,33,97,245.00 - 10,12,689.51 structure (concrete) of Mahi bridge no.226 at Km. 616/21-37 between stations Bhairogarh and Raoti on Godhra – Ratlam Section of Ratlam Division of Western Railway on permanent diversion.

BRIDGE Construction of Railway Over Bridge at 3,42,72,825.00 -1,46,38,683.43 Rly. Culvert No.440 A Near Anjana Sewage Treatment Plant, Surat 11. BRIDGE Construction of Four Lane Flyover at Soni 1,01,42,538.00 -7,01,067.51 ni Chali Junction at Junction across Narol- Naroda National High Way. 12. BRIDGE Construction of Approaches for Railway 3,76,23,165.00 3,58,078.50 under bridge in lieu of L.C. No.200 A – on Ahmedabad – Delhi B.G. Railway Line Nr, Unjha Town. 13. BRIDGE Providing & laying MS/DI pipeline from 39,79,834.00 -3,40,731.81 Sarkhej Gandhinagar Highway/Kali Branch Trunk Main Line to Tragad, , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 29 of 34 Charodi, Jagatpur, Chenpur for Western Urban Area of AMC. Agreement dated 02.02.2010.

PIPE LINE Engineering, Procurement and 46,76,04,245.00 -1,05,58,080.49 commissioning (EPC) Contract for Engineering procurement and construction (EPC) contract for construction of Pumping Stations at Patan and Kalyana and Supplying and laying 1650 mm dia (OD) M.S. pipeline from Patan to Dindrol, Dist. Patan.

PIPE LINE EPC Turnkey project for work of providing, -6,42,731.00 lowering, laying & jointing of 1150 mm dia. M.S. Transmission Main Incl. design 7 construction of Water Treatment Plant, Pumping Machinery, ESR, GSR etc. at Raiyadhar, under Rajkot Water Supply Scheme Agreement dated 03.06.2007.

PIPE LINE Design Build Contract with operation and 6,00,000.00 -12,03,087.87 maintenance for two years for bulk MS & DI pipe line U/G Sump, Office Building Compound Wall and Pump House with canal off take arrangement for integrated water supply scheme phase-II, part-I based on Sardar Sarovar Canal based Agreement dated 15.03.2008.

ROAD MODEL ROAD WORK AT DIFFERENT 4,20,31,166.00 -7,27,475.93 AMC ZONE TOTAL 78,57,69,819.00 3,67,83,327.46 From the perusal of the records and the tender agreements including work contract and letter of intent, it appears that the development of infrastructure facility including maintenance and risk factor in these contracts as well is directly upon the assessee and the whole sole responsibility is that of the assessee and no third party was involved. Hence, appeal of the Revenue being A.Y.2013-14 is dismissed.

Road Resurface of various main road of AMC, 6,44,136/- 9,680/- Ahmedabad.

Bridge Construction of Railway Over Bridge at 5,35,83,928/- 4,38,62,825/- Anjna Sewage Treatment Plant, Surat.

SMC Construction of Barrage protection and 84,89,86,099/- 3,43,98,123/- other work for Sant Sarovar (Indroda Recharge Scheme across River Sabarmati) 18. Bridge Construction of bridge across River Tapi 13,45,59,844/- 1,09,76,669/- Rander Jilani, Surat 19. Bridge Construction of ROB on Railway between 12,06,75,576/- 29,43,609/- Udhna & Sachin 20. Bridge Widening of River Bridge at Urmi School, 2,27,38,803/- 61,46,596/- Vadodara 21. FOB Construction of Split Fly Over Bridge at 20,51,79,350/- 3,70,69,290/- Vishwakarma Junction for Surat BRTS Phase-II , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 31 of 34

Road Construction and maintenance of rural road 2,46,54,604/- 20,91,640/- under PMGSY, Palanpur 23. Bridge Bridge No.571/681/686/711 of Western 1,05,16,956/- 90,46,649/- Railway between Varnama-Makarpura on Surat-Baroda line 24. Bridge Construction of Tena Khadi Olpad Bridge 27,25,000/- 1,29,038/- and missing link construction and upgradation of existing roads at Surat District TOTAL 26,27,15,682/- In addition to the above infrastructure facilities we have carried on following work of infrastructure facility in which no net profit – income was earned but loss was incurred.

RCC Bopatpur Varanasi RCC 10,77,19,368/- 34,01,395/- New Work Road Road Work Bridge Work Bridge 2. Pipeline Kotarpur Narmada Canal 39,10,43,143/- 1,06,99,165/- New Work Pipeline Work AMC 3. Pipeline Mangrol Junagadh 45,21,44,296/- 2,50,06,670/- New Work Work Pipeline Work 4. Road MPRDC Road Work 18,61,80,523/- 1,12,27,953/- New Work Work Package P-II 5. Bridge Narmada River Bridge 1,94,73,363/- 3,19,425/- New Work Work Work 6. Pipeline Pipeline Work Tapi District 3,93,67,626/- 15,86,783/- New Work Work Kanja 7. Pipeline Pipeline Work Tapi District 2,74,86,524/- 11,07,895/- New Work Work Valod 8. Pipeline Pipeline Work Tapi District 3,90,68,507/- 15,74,727/- New Work Work Zankhari 9. Bridge Piyush Complex 5,07,70,102/- 15,38,681/- New Work Work Pandesara Bridge Work 10. Bridge RVNL Bhildi & Deodar 11,41,72,658/- 34,60,212/- New Work Package-II 11. Bridge RVNL Sabarmati Koth 1,15,91,982/- 3,51,316/- New Work Gangod Package-I 12. Bridge RVNL Samakhali 16,82,55,723/- 50,99,299/- New Work Kidiyanagar Package-I 13. Bridge Steel Girder Bridge Botad 10,33,04,724/- 13,50,482/- New Work Package-III RVNL 14. Tank Sarva Talao Village Tank, 81,81,643/- 22,147/- New Work Patan TOTAL 171,87,60,182 6,67,46,153 (B) DETAILS OF TURNOVER AND NET PROFIT U/S.80IA IN RESPECT OF OLD WORK Sr. Nature of Name of Work Work Net Profit Status No Work Receipts (Rs.) (Rs.) . 1. Bridge Akota Steel Girder W. 35,75,413/- 32,07,932/- Work Railway Bridge Work Completed 2. Bridge Akota Dandia Bazar 1,00,13,325/- 97,56,050/- Work Bridge Work VMMS Completed 3. FOB Anuvrat BRTS FOB work, 33,51,67,111/- 34,54,509/- Work Surat Continued 4. Jetty at Bhavnagar Jetty at New 3,72,19,338/- 26,95,537/- Work , 2117/Ahd/2013, 2306, 2307, 2308/Ahd/2014,3121/Ahd/2015, 1230/Ahd/2016, 1620/Ahd/2017 & 1673/Ahd/2019 Assessment Years: 2008-09, 2009-10, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2016-17 respectively Page 33 of 34

Road Work PMGSY Road Work 8,68,41,316/- 65,613/- Work Package No.7126 Completed Fatepura & 7130 Zhalod TOTAL 61,49,14,859/- 2,46,89,006/- The CIT(A) has dealt with this issue in similar lines of Assessment Year 2011-12 to 2014-15 and no new distinguishing facts emerges in the present Assessment Year which has been pointed out by the Ld. DR. Hence, appeal of the Revenue being for A.Y. 2016-17 is dismissed.

In the combined result, all the nine appeals filed by the Revenue are dismissed.