The Assessee deduction on profits from hydro-irrigation projects. The Assessing Officer and CIT(A) disallowed the claim, treating the Assessee as a mere works contractor because the payments were received periodically and the projects ultimately belonged to the Government. The Tribunal ruled in favour of the Assessee. On revenue appeal, the High Court held that the Assessee qualified as a developer since they undertook the whole project from design to deployment of assets\/machines, resource allocation, costing, and execution, including all the risks. The High Court also held that the government owning the project is an inherent element of public infrastructure and does not disqualify a private developer from their claim. Court also observed that while interpreting taxing statutes, the provisions are to be read rationally. Where strict and literal construction leads to an absurd result, it produces a manifestly unjust result which could never have been intended by the Legislature. Court to construe statute to achieve intent of Legislature. Ambiguity must be construed in favour of that which is exempted. (AY. 2000-01 to 2001-02)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 80IA: Industrial undertakings-Infrastructure development-Developer-Contractor-Works contract-Engaged in activity of construction of two projects and it had borne and undertaken all development risks, geological risks and investment risks; assessee was a developer of projects and not merely a works contractor and, thus, would be eligible for deduction under section 80-IA(4)-Order of Tribunal affirmed.-Interpretation of taxing statutes-Provision should be read rationally -[S.80IA(4), 260A]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65044","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gV6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=65044"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65044\/revisions"}],"predecessor-version":[{"id":65045,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65044\/revisions\/65045"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}