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3.3 It is submitted that the assessee had during the year under consideration carried out the business of infrastructure facility i.e. irrigation project. Developer means a person who makes the things happen. It is assessee, who by mobilizing and synthesizing people, plan, technical expertise, supervision, coordination and control, developed and create the infrastructure facility i.e. irrigation project. It is further submitted that the assessee has entered in an agreement with the Government/Statutory Body for development of the infrastructure facility. The assessee had undertaken development of infrastructure facility and the term develop should be understood reasonably as bringing about or producing new facility by developing the natural resources (land) to harness the potential of another natural resources being water. It is emphasized that the reference is to the development of facility, which was hitherto not available to the community for use. Thus it is our submission that the assessee has offered to the community new facility for its use. The assessee has utilized his technical expertise and know-how and has undertaken detailed engineering. It has drawn up multiple drawings, it has also undertaken to bare risks, it has mobilize technical and other staff, appropriate materials and equipments to accomplish the development work. It is only because of its expertise, specialization, financial commitment and involvement that the project of construction and development of irrigation canal having such immense national importance was awarded to the assessee and the assessee had developed the said new infrastructure facility of such irrigation project. The assessee is therefore entitled deduction u/s 801A(4) 3.4 The assessee further submits that the amendment brought by the Finance Act 1999 was with the sole intention/purpose for providing deduction u/s 801A to the person who only develops or who only maintains and operates and infrastructure facility. If the Government does not pay a person who only develops the infrastructure facility, the entire cost of development would be a loss in the hands of the developers, as he is not operating the infrastructure facility. When the legislature has provided that the income of the developer of the infrastructure project would be eligible for deduction, it presupposes that there can be income to developer, i.e. to the person who is carrying on the activity of only developing infrastructure facility. A developer would have income only if he is paid for development of infrastructure facility, for the simple vs. DCIT) A.Y.- 2005-06, 2006-07, 2007-08 & 2011-12 - 11 -

The heading of Section 80IA mentions that it is for deductions in respect of profits and gains from industrial undertakings or enterprises engaged in Infrastructure Development etc. Section 80IA contains the provisions for those undertaking which are involved in development of Infrastructural facilities such as telecommunication development of industrial park, development of special economic zone, power generation and distribution of power etc. In addition to this, the deduction is also available for certain infrastructure facilities such as toll road, bridge, rail system, highway project, water supply project, port, airport, Inland waterway etc. It is apparent from the scheme of the section that the deduction u/s. 801A has been brought in the statute as an incentive to promote economic growth and industrialization and give an incentive by way of deduction from Income Tax Act for making such investment. All the projects for which the deduction is available requires huge financial investment and technical skills. Therefore, one of the most important ingredients for being entitled to claim deduction u/s. 801A is the financial investment and risk.

31. From the inception, thus the concept of development of infrastructure through private participation was clearly discernible Principal purpose was to infuse private investment is such projects to speed up infrastructure development which required massive expansion Even after bifurcation of section 80IA into section 80IA and section 80IB, with effect from 1.4.2000, this fundamental concept was not discarded. Sub-section (4) which formed part of the recast section 80IA did not carry any material changes from the earlier provisions of sub-section (4A) of section 80IA which existed prior to 1.4.2000

49. We have further considered the judgment passed by the Co-ordinate Bench in the matter of Rajkamal Builders Infrastructure Pvt. Ltd. in ITA No.441/Ahd/2011 & 20 Ors., order dated 13.05.2022, where the assessee had undertaken infrastructure facilities, such as, development infrastructure facilities such as development of roads, bridges, water treatment plants, canals, siphon work (irrigation projects), sewage treatment plant etc. by entering into contract with various Government authorities. In fact, we find that the clauses stipulated in the Tender document is almost akin to the clauses mentioned in the Tender document in respect of the assessee before us. Relevant to mention that though the assessee has taken different projects, the clauses mentioned mostly in all tendered documents are in respect of different projects entrusted upon assessee by the statute authorities in different years are identical. We find that on the identical facts and circumstances of the case, the assessee was found to be eligible for claiming deduction under Section 80IB(4) of the Act taking into consideration the overall aspect of works undertaken by the assessee therein. We are inspired by the ratio laid down by vs. DCIT) A.Y.- 2005-06, 2006-07, 2007-08 & 2011-12 - 45 -