KOTARKI CONSTRUCTIONS PVT LTD REP BY ITS CHAIRMAN & MANAGING DIRECTOR SHANKER KOTARKI Vs. ASST COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The petitioner-assessee M/s.Kotarki Constructions Pvt. Ltd. has filed this writ petition in this Court on 29.11.2016 challenging the Notice for Re-assessment for the A.Y. 2010-11 issued by the Assistant Commissioner of Income Tax, Circle-1, Kalaburgi, u/s. 147/148 of the Income Tax Act, 1961.

(2.) The reasons communicated on 15.03.2016 to the petitioner-assessee for such re-opening/re-assessment as produced on record are quoted below for ready reference:

(3.) The original Assessing Authority, while passing the Assessment Order under Section 143(3) of the Act, earlier on 28.03.2013, upon a detailed scrutiny of the records of the petitioner-assessee, engaged in the business of construction of roads, buildings, dams, National Highways etc., namely infrastructural facilities was allowed the deduction u/s. 80-IA(4) of the Act, for the A.Y.2010-11 vide Annexure-C dated 28.03.2013 after discussing all the relevant contracts and certificates issued by the concerned Executive Engineers of the National Highway Divisions of Public Works Department and others, and allowed the said claim of the deduction under Section 80-IA(4) of the Act, partly to the extent of 68.75% against the claim of the petitioner-assessee, and disallowed the remaining part on the ground that some of the works contracts were only for improvement and re-laying of the roads, which do not fall within the definition of "Developing, operating and maintaining any infrastructure facility" for which such deduction in the form of incentives is given to the Developers of the Infrastructure facilities u/s. 80-IA(4) of the Act.