Deduction u/s 80IA(4) cannot be disallowed, merely on the ground that assessee is not the owner of infrastructure facilities

Brief of the case:

In the case of En-Vision Enviro Engineers (P) Ltd. Vs DCIT,  ITAT Ahmedabad held that deduction u/s 80IA(4) cannot be disallowed, merely on the ground that the assessee must be owner of the infrastructure facilities and the assess should be a developer and not contractor.

Facts of the case:

The assessee company is engaged in the business of consulting of pollution control and environmental related works, erection and commissioning of plant and also providing service of the treatment and disposal of bio medical waste. The assessee filed its E-return of income on 29.09.2008 showing total income at Rs.24,32,420/-. The return was processed u/s 143(1). The case was taken up for scrutiny assessment and accordingly notice u/s 143(2) of the Act was issued and served upon the assessee. Subsequently notice dated 13.08.2010 u/s 142(1) of the Act was also issued and duly served upon the assessee along with detailed questionnaire.

In response to the notices the assessee filed written submissions. After considering the submissions of assessee the AO rejected the claim of the assessee and made addition of Rs.66,53,384/- on account of disallowance of claim u/s 80IA(4) of the Act.

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