Case Law Details
ACIT Vs Rohan & Rajdeep Infrastructure (ITAT Pune)
Introduction: The legal tussle between ACIT and Rohan & Rajdeep Infrastructure, revolving around the denial of deduction u/s 80IA(4) for specific projects, reached its climax at ITAT Pune. This article delves into the intricacies of the case, examining the original assessment, the reopening of the case, and the detailed analysis leading to ITAT’s resolution.
Detailed Analysis: During the original assessment, the AO allowed deduction u/s 80IA(4) for the Terna Bridge project but denied it for two other projects, deeming them non-new infrastructural facilities. Notably, the AO, aware of the firm’s status, did not object to the deduction on the grounds of the firm’s eligibility during the original assessment. However, in a subsequent reassessment, the AO contested the deduction based on the firm’s status, arguing that only companies or consortia of companies are eligible under section 80IA(4)(i)(a).
The CIT(A), in alignment with ITAT Pune’s earlier decision (ITA No.633/PUN/2017), upheld the firm’s eligibility for the deduction, considering it akin to a consortium and hence eligible under section 80IA(4). The Tribunal emphasized that the Revenue had allowed the deduction for prior years and presented no new facts to justify the denial in the current assessment.
Additionally, a dispute arose regarding the amortization of the opening WDV over the remaining concession period for toll collection rights, treated as an intangible asset. The AO, following CBDT Circular No.9/2014, disallowed the claim for depreciation. However, the CIT(A) and ITAT Pune, referring to precedent and the CBDT circular, ruled in favor of the assessee, allowing depreciation on intangible assets.
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