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This is an appeal by the Revenue against the order dated 08.08.2013 of CIT(A)-XII, Kolkata relating to A.Y.2010-11.

2. Ground No.1 raised by the revenue reads as follows :-

"1.In the facts and circumstances of the case the ld. CIT(A) erred in deleting the disallowance of Rs.15,55,200/ - on account of purchase from. M/s. B.M.Sales Corporation despite the fact that this party has denied any transaction with the assessee company."

3. The Assessee is a company. It is engaged in the business of outdoor advertising and media advertising, infrastructure development and maintenance. In the course of assessment proceedings for A.Y.2010-11 the AO noticed that the assessee had claimed to have purchased angles and channels from M/s. B.M.Sales Corporation of the value of Rs.15,55,200/- for the purpose of display of hoardings. The said sum was claimed as an expenditure and deduction while computing the income from business. The AO noticed that in A.Y.2009-10 purchase from M/s. B.M.Sales Corporation was held by the AO in the order of assessment for A.Y.2009-10 to be not genuine. This was based on the reply received from M/s. B.M.Sales Corporation in response to a notice by the AO u/s 133(6) of the Act that it had never supplied any material whatsoever to the assessee. Following the findings in the order of assessment for A.Y.2009-10, the AO disallowed the claim of the assessee for deduction of a sum of Rs.15,55,200/-.

21. The Provisions of Sec.80-IA(4)(i) reads thus:

"Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc. 80-IA. (1) Where the gross total income of an assessee includes any profits 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.] (2) The deduction specified in sub-section (1) may, at the option of the assessee, be claimed by him for any ten consecutive assessment years out of fifteen years beginning from the year in which the undertaking or the enterprise develops and begins to operate any infrastructure facility or starts providing telecommunication service or develops an industrial park or develops a special economic zone referred to in clause (iii) of sub-section (4) or generates power or commences transmission or distribution of power or undertakes substantial renovation and modernisation of the existing transmission or distribution lines :

26. Aggrieved by the order of the CIT(A) the revenue has raised ground no.4 before the Tribunal.

27. The ld. DR submitted before us that the CIT(A) has not seen that the assessee was in the business of advertisement and not development of infrastructure facility. His further submission was that he has also not examined that the quantification of the amount of eligibility of deduction u/s 80IA of the Act. According to him a part of the advertisement cannot be considered as derived from development of infrastructure facility. According to him the CIT(A) has co-terminus power with that of the AO and he ought to have examined the quantum of deduction that should be allowed u/s 80IA of the Act. He prayed that the matter should be remanded to the CIT(A) on the above aspects.

wherein the Hon'ble High Court has upheld ITAT's decision quashing the revision order passed by ld. CIT u/s 263 of the Act wherein bus shelters and foot over bridges were not to be considered as part of the infrastructure facility for claiming deduction u/s 80IA of the Act.

8.1. As regards the issue raised by the ld. DR that the income which is the subject matter of claim of deduction u/s 80IA of the Act was not derived from the business of advertising of bus shelters and foot over bridges, we find that this is altogether a new issue which is not even the case of AO. The AO has made the disallowance only on the ground that construction of bus shelter and foot over bridge cannot be treated as development of infrastructure facility. Hence they do not qualify for deduction u/s 80IA of the Act. This aspect of AO's disallowance has been duly over ruled by ld. CIT(A) as well as ITAT. The same also draws support from the Hon'ble Calcutta High Court decision in the case of DCIT vs Selvel Advertising P.Ltd. In these cases it has been held that development of foot over bridges and Bus shelters do qualify for deduction u/s 80IA of the Act on account of infrastructure development. When the AO has not raised any issue as to whether the income of the assessee can be considered to be income derived from the industrial undertaking and the same was also not the subject matter of consideration before the ld. CIT(A) nor any such ground has been raised before the ITAT, in our considered opinion the ld. DR can not now enlarge the scope of the Revenue's appeal before us.