Dismissing the appeal the Court held that the Tribunal had rightly applied the proviso to S.80-IA(4) and had held that the assessee was recognised as a contractor for the railway sidings, which fell under the definition of “infrastructure facility” and that it was entitled to the benefit under S. 80-IA . It had also rightly held that the proviso did not require that there should be a direct agreement between the transferee enterprise and the specified authority to avail of the benefit under S. 80-IA. Object and intent of legislature is considered. (AY. 2006-07)
CIT v. Chettinad Lignite Transport Services Pvt. Ltd. (2019) 415 ITR 107 / 177 DTR 329/ 309 CTR 268/265 Taxman 466(Mad.)(HC)
S. 80IA : Industrial undertakings–Infrastructure development- Maintaining and operating railway sidings under agreement with principal contractor who had entered into agreement with railways and recognised by railways as transferee- Entitle to deduction-Object and intent of legislature is considered. [S. 80IA(4)]