(1.) THESE petitions arise out of common background. They have been heard together and are being disposed of by this common judgment. For the purpose of this judgment, facts stated in Special Civil Application No.11781 of 2009 may be adopted.
(2.) PETITIONER has challenged the vires of explanation inserted in sub-section (4) of section 80IA of the Income Tax Act,1961 ( the Act for short) by Finance Act No.2 of 2009. Sub-section (4) of section 80IA of the Act, as is well known, provides for certain deduction of income from the eligible business and primarily pertains to infrastructure development. By adding the impugned explanation, the Legislature provided that that nothing contained in the section shall apply in relation to a business referred to in sub-section (4) which is in the nature of a works contract awarded by any person and executed by an undertaking or enterprise. This explanation is added with retrospective effect from 1.4.2000. It is this amendment which has given rise to the present controversy.
(3.) ON the other hand, the case of the respondents, emerging from the affidavits filed is that there is clear distinction between a developer and a contractor . All along, the benefits intended under section 80IA(4) of the Act were for a developer and not for a contractor. The explanation only puts the issue beyond controversy. The amendment was within the legislative competence of the Parliament. It is not shown to be arbitrary or unreasonable.
ABOUT US "REGENT COMPUTRONICS PVT. LTD." is a Company incorporated in 1991 under the provisions of the Companies Act, 1956. Since its inception to 1995, the Company was busy in carrying out the activities related to various Banks' Job Work..
Read More
Sales: sales@the-laws.com
Support: info@the-laws.com
8000853936
9376168072
27, 4TH FLOOR, Agrawal Center, Ashram Road, Income Tax, Ahmadabad 380014.
LOGIN