M/s. Megha Engineering & Infrastructure Ltd. Vs. The Assistant Commissioner of Income Tax

Parties Involved

Facts Summary

The appellant, M/s. Megha Engineering and Infrastructure Company Limited, is an infrastructure company engaged in the execution of various development projects. The company filed its return of income for the assessment year 2016-17, claiming a deduction under Section 80IA(4) of the Income Tax Act, 1961. The Assessing Officer disallowed the deduction for projects awarded to Joint Ventures (JV) and Consortiums, which the appellant executed as a constituent member. The appellant appealed to the Commissioner of Income Tax (Appeals), who allowed the deduction. The Revenue appealed to the ITAT, Hyderabad, which upheld the Commissioner's decision.…

Legal Issues

• 1. Whether the appellant is eligible for deduction under Section 80IA(4) of the Act for projects executed by it as a constituent of JV/Consortium?
• 2. Whether the disallowance of expenditure related to exempt income under Section 14A read with Rule 8D of I.T. Rules, 1962 is correct?
• 3. Whether the belated payment of employee contribution to Provident Fund is allowable under Section 36(1)(va)?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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