T and T Infra Limited vs. ACIT, Circle – 7, Pune

Parties Involved

Facts Summary

T and T Infra Limited, a company engaged in contracting business, filed an appeal against the order of the Commissioner of Income Tax (Appeals) dated 26.12.2019, relating to the assessment year 2016-17. The assessee claimed a deduction under section 80IA(4) of the Income Tax Act for profits from 44 infrastructure facilities developed by it. The Assessing Officer disallowed the deduction, finding that the assessee was merely a works contractor and not a developer. The Commissioner of Income Tax (Appeals) upheld the Assessing Officer's decision. The assessee appealed to the Tribunal, arguing that it was a developer and not a works contractor. The Tribunal found that the Assessing Officer had not properly analyzed the terms and conditions of each project and had not considered the clarification issued by the Central Board of Direct Taxes. The Tribunal allowed the appeal for statistical purposes and directed the Assessing Officer to decide the issue afresh.…

Legal Issues

• 1. Whether the assessee is eligible for deduction u/s 80IA(4) of the Act?
• 2. Whether the assessee is a developer or a works contractor?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Vijay M. Mistry Construction Pvt. Ltd. vs. DCIT

  Ahmedabad bench

• Senbo Engineering Limited vs Deputy Commissioner of Income Tax

  Kolkata bench

• Shyam Gopal vs. DCIT, Circlel-52(1)

  C BENCH, DELHI benchAY 2013-14Allowed

• Shri Sunil Bankatlal vs. The Income Tax Officer

  Pune bench

• DCIT, CC-2(2), Kolkata vs. M/s Spml Infra Limited

  Kolkata Bench benchAY 2017-18, 2020-21Allowed

• DCIT, Circle-7(1), Kolkata vs. Sarat Chatterjee & Co. VSP Pvt. Ltd