In order to avail of a deduction in terms of section 80-IA(4) of the Act, the assessee could either (i) develop, or (ii) operate and maintain, or (iii) develop, operate and maintain the facility. The requirements of developing, maintaining and operating an infrastructure facility are not cumulative, even prior to the amendment to section 80-IA of the Act by the Finance Act, 2001. Thus, the assessee is entitled to deduction u/s. 80-IA(4) of the Act in respect of development of infrastructural facility alone, irrespective of whether it operates and maintains such facility.

The fact that the assessee was a “developer” of infrastructural projects and eligible for deduction u/s. 80-IA(4) of the Act in respect of infrastructural facilities developed by it, having been decided in the assessee’s favour in the past, the Department was not entitled to take inconsistent stand in respect of each assessment year on the same set of facts. Moreover, no appeal had been preferred by the Department against the allowance of deduction u/s. 80IA(4)(i) of the Act qua AY. 2020-21. (AY. 2014-15, 2017-18, 2019-20)