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"8. The assessee is in the business of infrastructure development. It carries on various projects like water supply, irrigation, roads etc. under agreements with Central Government, State Government etc. It has claimed deduction u/s. 80IA(4) of the Act of Rs.14,22,78,057/-. The above amount includes, inter alia, an amount of Rs.3,85,74,806/- on account of various miscellaneous receipts. According to the AO, these receipts are not eligible for deduction u/s. 80IA(4) of the Act being not derived from eligible business. Accordingly, he has disallowed claim of assessee u/s. 80IA(4) of the Act in respect of such miscellaneous receipts.
16. The assessee relies upon the detailed submissions made before the CIT (A) and his findings as well as submissions made hereinabove. It is submitted that the assessee has undertaken various infrastructure development projects, all of which are eligible for deduction u/s. 80IA(4) of the Act and about which there is no dispute. Therefore, it is requested the finding of the Hon'ble Tribunal in A.Y. 2008-09 so far as the common items for A.Y. 2008-09 and for A.Y. 2009-

10 are concerned be followed. As regards the other amounts, it is submitted these receipts are integral part of the business of the assessee as explained hereinabove.

17. Since the only activity of the assessee is of infrastructure development project and the entire business eligible for deduction, there is no other source of income and, hence, the above amounts may kindly be held to be eligible for deduction u/s. 80IA(4) of the Act."

31. We have heard both the sides and perused the oral/written submissions of both the parties. On careful examination, we find the miscellaneous receipts can be sub-grouped into three lots i.e. (i) the receipts covered by the earlier Tribunal's order; (ii) the receipts, assessee never claimed deduction; and, (iii) the business connected receipts or otherwise. So far as sub-group one is concerned, we find the receipts is covered by the order of the Tribunal in the assessee's own case for the assessment year 2008-09 (supra). The Assessing Officer is directed to follow the said order of the Tribunal (supra) scrupulously. When it comes to the balance of receipts, we find in respect of few receipts, the assessee never claimed the deduction. The Assessing Officer is directed to consider the same. Finally, regarding the rest of the receipts, if any, Assessing Officer shall examine each of them carefully qua the business nature, nexus to the business activity of the assessee etc and allow the deduction if they are of business nature. The Assessing Officer, after giving reasonable opportunity to the assessee, shall decide the issue in accordance with the law. Accordingly, the ground no.1 is partly allowed for statistical purposes.

32. Ground no.2 relates to the allowability of deduction u/s 80IA(4) of the Act in respect of the additional income declared during the search. In this regard, ld. Counsel for the assessee filed the following written submission :-

"18. As stated hereinabove, the assessee is carrying on various infrastructure development projects in the field of water supply, irrigation, roads etc. The income of the assessee is eligible for deduction u/s. 80IA(4) of the Act. The assessee has filed its return of income for the year under consideration, i.e., A.Y. 2009-10 on 31.10.2009. Thereafter, on 15.06.2010 the search and seizure action u/s. 132 of the Act was carried out at the premises of the assessee. It may kindly be noted that since the time limit for issuing notice u/s. 143(2) of the Act was not expired on the date of search, the pending assessment proceedings were abated. Subsequently, a notice u/s. 153A of the Act was issued on 30.05.2011 in response to which the assessee filed return of income in which deduction u/s. 80IA(4) of the Act has been claimed at Rs.14,22,78,057/- (It has been wrongly mentioned in the assessment order that the assessee has stated that return filed earlier may be treated as return in response to S. 153A of the Act.)