Mega Offer Avail 65% Off in CA IPCC and 50% Off in all CA CS CMA subjects.Coupon- IPCEXAM65 & EXAM50. Call: 088803-20003

CA Final Online Classes
CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Sec 80IA(4)(i) of the IT Act1961-Widening of existing roaddef of a new infrastructure facilityclarification


 Notice Date : 18 May 2010

Widening of existing road – definition of a new infrastructure facility – clarification regarding

CIRCULAR NO 4/2010 Income Tax

Dated: May 18, 2010

Subject:- Widening of existing road – definition of a new infrastructure facility – clarification regarding.

References have been received by the Board as to whether widening of existing roads constitutes creation of new infrastructure facility for the purpose of Section 80IA (4)(i) of the Income Tax Act, 1961.

Section 80IA (4)(i) provides for a deduction to an undertaking engaged in developing, or operating and maintaining, or developing, operating and maintaining any infrastructure facility subject to satisfaction of the conditions laid down in the Section. The Explanation to subsection 80IA(4)(i) states that for the purpose of this clause, infrastructure facility means inter alia:-

“(a) a road including toll road, a bridge or a rail system;

(b)  a highway project including housing or other activities being an integral part of the highway project;”

The issue has been examined by the Board. It has been decided that widening of an existing road by constructing additional lanes as a part of a highway project by an undertaking would be regarded as a new infrastructure facility for the purpose of Section 80IA (4)(i). However, simply relaying of an existing road would not be classifiable as a new infrastructure facility for this purpose.

F.No.178/14/2010-ITA.I

(RAMAN CHOPRA)
Director(ITA-I)

 

Guest
on 20 May 2010
Notification No : 04/2010
Published in Income Tax
Source : ,










Trending Tags