Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: form 3cd :: articles on VAT and GST in India :: empanelment :: cpt :: Central Excise rule to resale the machines to a new company :: VAT Audit :: due date for vat payment :: TDS :: VAT RATES
 
 
From the Courts »
 Prabhatam Investment Pvt. Ltd vs. ACIT (ITAT Delhi)
 CIT vs. Laxman Industrial Resources Pvt.Ltd (Delhi High Court)
  State Of Jharkhand vs. Lalu Prasad Yadav (Supreme Court)
 CIT vs. Krishan K. Aggarwal (Supreme Court)
 Ambuja Cements Ltd. Vs. Commissioner, Service Tax Commissionerate, Delhi
 Director Of Income Tax (Exemptions) Vs. Vishwa Hindu Parishad
 ITAT Proposes Important Changes To Tribunal Rules
 Meherjee Cassinath Holdings Pvt. Ltd vs. ACIT (ITAT Mumbai)
  CIT vs. Pashupati Nath Agro Food Products Pvt. Ltd (Allahabad High Court)
  Raj Dadarkar & Associates vs. ACIT (Supreme Court)
 CST vs. Sunil Haribhau Pote (Bombay High Court)

No tax relief - ITAT
November, 06th 2009

The Income Tax Appellate Tribunal has held that contractors, while calculating their income-tax liability, cannot claim deduction on profits from an infrastructure project.

Section 80-IA (4) of the Income-tax Act allows deduction in respect of profits from infrastructure projects for developers but not contractors, who execute only part of the project.

There should be complete development of the facility and not just a part of it, to claim such deduction, held the ITAT in a judgement on October 26. Only the persons directly engaged in developing, maintaining and operating the facility can be given the benefit, added the order.

The ITAT was hearing an appeal filed by a civil contractor who claimed deduction under section 80-IA (4) on profits from infrastructure projects executed by it.

The lower authorities had rejected the claim on the ground that the assessee was a mere contractor and not a developer. The ITAT held that on merit, the provision applies to a developer.

The difference between a developer and contractor is that the former designs and conceives new projects, while the latter executes them.

As the assessee was merely executing the job of civil construction, it was not eligible for the deduction. The assessee was also not the owner of the facility, the appellate body held.

The section under which the assessee sought deduction provides that it shall not apply to a person executing a work contract, the I-T appellate authority observed.

Also, the provision is unambiguous and cannot be interpreted otherwise, the I-T appellate authority observed.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions