ITAT : 'Strengthening' of existing road not ‘widening’; Denies relief u/s 80IA(4) for highway project

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