ACIT Vs Patil Construction and Infrastructure Limited (ITAT Pune)
ITAT Pune Sends Back 80-IA Claim – Settlement Commission Order Not Blanket Licence for All Projects
Patil Construction & Infrastructure Ltd, engaged in civil contracts, claimed deduction u/s 80-IA for infrastructure projects. The AO denied deduction (₹5.6 cr in AY 2013-14) holding the Assessee was only a contractor executing road & runway works, not a “developer”, relying on CBDT Circular 4/2010 & the statutory auditor’s remark that the claim conflicted with the Act.
Before CIT(A), the Assessee argued that all details including Form 10CCB were furnished & that the Settlement Commission had already recognised it as developer for AY 2012-13. Relying on that, CIT(A) allowed most of the claim (₹ 5.10 cr) following NFAC & Settlement Commission orders.
Revenue appealed, contending that each year’s eligibility depends on the nature of projects, not the status of the assessee, and that the Settlement Commission’s order was case-specific.
The Tribunal agreed that CIT(A) had mechanically followed earlier orders without verifying new projects. It observed that only projects already covered by the Settlement Commission till AY 2012-13 could be treated as eligible; new or unverified contracts must be re-examined by the AO.
Hence, the matter was remanded with directions: allow deduction for projects covered by Settlement Commission, disallow those withdrawn, & verify all others afresh. All three Revenue appeals were allowed for statistical purposes.
