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19. Vijay Infrastructure Ltd. (2018) 402 ITR 0363 (Allahabad HC)

20. The Supdt. Engineer vs ITO (2013) 36 CCH 0568 (Chandigarh Tribunal)

21. Circular no. 4 of 2010 dated 18-05-2010 (widening of an existing roads)

22. Rohan & Rajdeep Infrastructure (2013) 157 TTJ 333 (Pune Tribunal)

23. Shristi Infrastructure Development Corporation Ltd. (2008) 28 CCH 0449 (Delhi Tribunal)

24. Rajkamal Builders Infrastructure P. Ltd. in ITA Nos. 118/ A/2009 and others dated 13-05-2022 (Ahmedabad Tribunal)

6.1 However, before we analyse the order of Ld. CIT(Appeals) in respect of each individual projects, it would be useful to go through the relevant statutory provisions and law on the subject in light of various judicial precedents to have a better understanding of the precise scope of the deduction u/s 80-IA(4) . The relevant extracts of the section are reproduced below.

Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc. 80-IA.

Further, the Memorandum to the Finance Bill 2007 is also reproduced below to throw useful light on the intent behind introducing the above provisions (effective from 01-04-2000):
I.T.A Nos. 127 & 148/Rjt/2015 A.Y. 2009-10 Page No 12 Backbone Enterprise Ltd. vs. DCIT & ACIT vs. Backbone Enterprise Ltd.
Clarification regarding developer with reference to infrastructure facility, industrial park, etc. for the purposes of section 80-IA Section 80-IA, inter-alia, provides for a ten-year tax benefit to an enterprise or an undertaking engaged in development of infrastructure facilities, Industrial Parks and Special Economic Zones. The tax benefit was introduced for the reason that industrial modernization requires a massive expansion of, and qualitative improvement in, infrastructure (viz., expressways, highways, airports, ports and rapid urban rail transport systems) which was lacking in our country. The purpose of the tax benefit has all along been for encouraging private sector participation by way of investment in development of the infrastructure sector and not for the persons who merely execute the civil construction work or any other works contract. Accordingly, it is proposed to clarify that the provisions of section 80-IA shall not apply to a person who executes a works contract entered into with the undertaking or enterprise referred to in the said section. Thus, in a case where a person makes the investment and himself executes the development work i.e., carries out the civil construction work, he will be eligible for tax benefit under section 80-IA. In contrast to this, a person who enters into a contract with another person [i.e., undertaking or enterprise referred to in section 80-IA] for executing works contract, will not be eligible for the tax benefit under section 80-IA. This amendment will take retrospective effect from 1st April, 2000 and will, accordingly, apply in relation to the assessment year 2000-2001 and subsequent years. I.T.A Nos. 127 & 148/Rjt/2015 A.Y. 2009-10 Page No 13 Backbone Enterprise Ltd. vs. DCIT & ACIT vs. Backbone Enterprise Ltd.

for commencing and completing the works for infrastructure development for SEZ at Dahej, surveying and setting out of works and other pre-construction stage activities as required by RIPL/GIDC etc. The terms and conditions of the contract were similar to those as mentioned in the contracts entered between a developer and the government or its agencies for developing any infrastructure facility for public utility. After having regard to the terms and conditions of the agreement for development of the infrastructure facility, the rulings of the courts and position of law on the issue, in my opinion, the assessee acted as a developer because he developed infrastructure facility and handed over the same to the authority concerned with guarantee period for maintenance. Therefore, the assessee was eligible for claim of deduction u/s. 80IA (4) (i) of the Act. Accordingly, the same is allowed.