Calcutta High Court
Commissioner Of Income Tax vs Selvel Advertising Pvt. Ltd on 22 April, 2010
Author: Mohit S. Shah
Bench: Mohit S. Shah, Sengupta
ITAT No. 49 OF 2010
GA No.894 of 2010
IN THE HIGH COURT AT CALCUTTA
SPECIAL JURISDICTION (INCOME TAX)
ORIGINAL SIDE
COMMISSIONER OF INCOME TAX, KOLKATA-IV, KOLKATA
Versus
SELVEL ADVERTISING PVT. LTD.
BEFORE:
The Hon'ble CHIEF JUSTICE MOHIT S. SHAH
AND
The Hon'ble JUSTICE SENGUPTA
Date : 22nd April, 2010.
Appearance :
Mr. M.P. Agarwal, Advocate.
.......... For appellant.
None appears for respondent.
The Court :- The Revenue has preferred this appeal under Section 260A of Income Tax Act, 1961 against the order dated 30.9.2010 of the Income Tax Appellate Tribunal 'A' Bench, Kolkata for the assessment year 2004-05.
The appellant proposed the following substantial questions of law;-
i) "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is correct in quashing the revision order under section 263 of the ITAT No. 49 OF 2010 2 GA No.894 of 2010 Income-tax Act, 1961, passed by the Commissioner of Income-tax, on the ground that the Assessing Officer had taken one of the possible views wile, in fact, the question is one of law and not fact and incorrect appreciation of law by the Assessing Officer is amenable to correction through the instrumentality of revision order under section 263 of the Act?"
ii) "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is correct in holding that automatic traffic signal and pedestrian foot bridge would constitute infrastructure facility defined in clause (a) of Explanation below sub-section (4) of section 80-IA of the Income-tax Act, 1961 ?"
Since, we are inclined to take the view that the Tribunal was right in holding that the automatic traffic signal and pedestrian foot bridge would constitute infrastructure facility as contemplated in clause (a) of the explanation to sub section (4) of Section 80-IA of the Income Tax Act, 1961, it is not necessary to answer question no. 1.
Section 80-IA provides that where the gross total income of an assessee includes any profit and gains derived by an undertaking or an enterprise from any business referred to in sub-section (4) (such business being hereinafter referred to as "the eligible business"), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent of the profits and gains derived from such business for ten consecutive assessment years.
The relevant portion of sub-section (4) reads as under;-
"(4) This section applies to-ITAT No. 49 OF 2010 3 GA No.894 of 2010
(i) any enterprise carrying on the business [ of (i ) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining] any infrastructure facility which fulfills all the following conditions, namely:-
(a) to (c) .......................
Explanation defines infrastructure facility as under;- "(a) road including toll road, a bridge or a rail system;"
The Tribunal took the view that installation of automatic traffic signal and pedestrian footbridge would be an integral part of road including a bridge. We do not find any fault with the interpretation placed by the Tribunal on Clause (a) of explanation to sub-section (4) of Section 80-IA of the Income-tax Act, 1961.
In view of the above, the proposed question no. 1 is academic and, therefore, we are not inclined to entertain this appeal in respect of question no.1.
The appeal is, therefore, summarily dismissed. The stay application is disposed of.
Let photostat certified copy of this order, if applied for, be supplied to the parties subject to compliance with all formalities.
(MOHIT S. SHAH, J.) (SENGUPTA, J.) GH.