Section 80-IA(4A) — the law in short
What the courts have decided on section 80-IA(4A), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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CIT v ABG Heavy Industries Ltd
High CourtHelps taxpayerValidity unconfirmed
I supplied, installed and maintained cranes at a port under a lease contract and hand them over free at the end. Can I claim section 80-IA when I do not own or run the port?
Yes. The Bombay High Court held that an enterprise which develops a part of an infrastructure facility qualifies under section 80-IA; it does not have to develop the whole port. The assessee supplied, installed, tested, commissioned, operated and maintained container handling cranes at Jawaharlal Nehru Port Trust for ten years on a build-own-lease-transfer basis, after which the cranes vested in the Port Trust free of cost. The port authority certified that the cranes formed an integral part of the port. The Court also held that developing, operating and maintaining were never cumulative conditions, the Board's circulars having consistently said so and the Finance Act 2001 amendment having put it beyond controversy.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.