Bangalore ITAT rules that
strengthening and maintaining of the existing road would not come within the
purview of laying down new infrastructure facility, denies claim of 100%
deduction u/s. 80IA(4) for AYs 2013-14 & 2014-15; Noting that the purpose
of introduction of Sec. 80IA(4) was to encourage and accelerate the development
of new infrastructure in the country, ITAT observes that the assessee in
present case is operating and maintaining an already existing four-lane road
(Tambaram-Tindivanam section of NH-45 in the State of Tamil Nadu) by
strengthening it; With regard to assessee’s argument that the service lane was
developed by it pursuant to the concession agreement with NHAI, ITAT clarifies
that “laying down of the service lane cannot entitle the assessee to claim the
benefit of laying down of the new infrastructure.”; Further, ITAT cites
distinction between the widening of the existing road by constructing
additional lanes as part of the highways project vis-a-vis, improving,
maintaining, refurbishing the existing road, clarifies that as per CBDT
circular No. 4 of 2010, scope of Sec. 80IA includes only widening of the
existing road; Distinguishes assessee’s reliance on plethora of rulings including
jurisdictional HC ruling in Kotarki Construction P. Ltd., on facts, also holds
that the co-ordinate bench in case of group co. did not discuss the facts of
present case and merely relied on earlier order involving facts of widening of
road; Noting that the lower authorities had disallowed assessee’s claim u/s.
80IA(4) on ad-hoc basis, ITAT calls for revenue records from NHAI and directs
CIT(A) to recompute the amount of disallowance in respect of the existing
4-lane infrastructure:ITAT
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