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7. On perusal of the aforesaid decision, we observe that the facts of the case law cited by the AO are totally different from that of assessee's case and the AO has wrongly applied the said decision to impugned assessee. As the assessee had constructed a new road for Govt. of Rajasthan thereby acted as developer and not as a Contractor. In support of the same, assessee had submitted copy of Tender Agreement before the lower authorities and we had also carefully gone through the terms and conditions of Tender Agreement. As per our considered view, a person, who enters into a contract with another person, would be a contractor no doubt however in the instant case the assessee having entered into an agreement with the Government agencies for development of the infrastructure projects, was obviously a contractor, but that did not derogate the assessee from being a developer as well. The term 'contractor' is not essentially contradictory to the term 'developer'. On the other hand, rather section 80-IA(4) itself provides that the assessee should develop the infrastructure facility as per the agreement with the Central Government, State Government or a local authority. So, entering into a lawful agreement and thereby becoming a contractor should, in no way, be a bar to the one being a developer. Therefore, merely because, in the TDS certificate tax at source was deducted u/s. 194C being applicable to a contractor cannot be the reason for treating a genuine developer as a contractor. The same cannot detract the assessee from the position of M/s. Bhinmal Contractors Property & Land Developers P. Ltd being a developer; nor should it debar the assessee from claiming deduction under section 80- IA(4). Therefore, the assessee, who is only engaged in developing the infrastructural facility, i.e., road, is entitled to the benefits of the deduction under section 80-IA(4). The provisions of sub-clause (c) of clause (i) of section 80-1 A (4) were inapplicable to the instant case, Hence, the order of the AO is based on incorrect interpretation of law.

of section 8o-IA and, hence, in the absence of assignment of any M/s. Bhinmal Contractors Property & Land Developers P. Ltd definition by the statute, its meaning should be understood in the common parlance. Accordingly a developer is a person who develops the facility and such person may or may not be a contractor. On the other hand, a contractor is stated to be a legal term whose rights and duties vis-a-vis contract are determined by way of legal document called the contract. For example if a contract to construct a highway from Mumbai to Delhi is given to a person he is contractor as well as developer. As against that a person who has been given a contract for painting or beautification is merely a contractor but not a developer. Accordingly while developing a project, a developer has to make technological inputs, entrepreneurial inputs, etc. Besides, there is financial involvement in terms of deployment of man and machine as well as bank guarantees. The developer undertakes the risk and reward of the project and is accountable to the authorities for the development work carried out by them. Therefore the assessee in the present case cannot and should not be characterized anything other than a developer.

M/s. Bhinmal Contractors Property & Land Developers P. Ltd

16. According to this dictionary, "developer" is a person or company that designs and creates new products, whereas "contractor" is a person or a company that has a contract to do work or provides services or goods to another. The New Shorter Oxford Dictionary defines the word "contractor" as : person who enters into a contract or agreement. Now chiefly spec, a person or firm that undertakes work by contract, esp. for building to specified plans". In the light of the meaning ascribed to these words by the dictionaries, it may be observed that the developer is a person who designs and creates new products. He is the one who conceives the project. He may execute the entire project himself or assign some parts of it to others. On the contrary, the contractor is the one who is assigned a particular job to be accomplished on the behalf of the developer. His duty is to translate such design into reality. There may, in certain circumstances, be overlapping in the work of developer and contractor, but the line of demarcation between the two is thick and unbreachable. When the person acting as developer, who designs the project, also executes the construction work, he works in the capacity of contractor too. But when he assigns the job of construction to someone else, he remains the developer simpliciter, whereas the person to whom the job of construction is assigned, becomes the contractor.

17. The role of developer is much larger than that of the contractor. It is no doubt true that in certain circumstances, a developer may also do the work of a contractor but a mere contractor per se can never be M/s. Bhinmal Contractors Property & Land Developers P. Ltd called as a developer, who undertakes to do work according to the pre- decided plan.

18. Further it is relevant to note that the word "developing" used in sub- section (4) is with reference to "infrastructure facility". When the meaning of the word "infrastructure facility" as per Explanation, is perused your honour will found that it have been defined exhaustively by referring to a road project, airport, port, etc., a highway project, a water supply project and irrigation project, etc. Therefore, the use of word "developing" in juxtaposition to infrastructure facility indicates that what is eligible for deduction under this sub-section is the profits and gains derived from the development of infrastructure facility and not something de hors it. So in order to be eligible for deduction the development should be that of the infrastructure facility as a whole and not a particular part of it, it may be possible that some part of development work is assigned by the developer to some contractor for doing it on his behalf. That will not put the doer of such work into the shoes of a developer.