Held that the assessee having agreement with State Government /Statutory bodies for developing new infrastructure facilities. i. e. irrigation projects is entitle to deduction. The Tribunal also held that Interest on mandatory fixed deposit as security against bank guarantee is eligible for deduction. (AY. 2005-06, to 2007-08, 2011-12)
Infab Infrastucture (P) Ltd v. Dy. CIT(2023) 222 TTJ 421 (Ahd)(Trib)
S. 80IA : Industrial undertakings-Enterprises engaged in infrastructure development-Agreement with State Government /Statutory bodies-Developing new infrastructure facilities. i. e. irrigation projects-Entitle to deduction-Interest on mandatory fixed deposit as security against bank guarantee-Eligible for deduction. [S. 80IA(4)(i)]