Itta/470/2011 Of The Commissioner Of Income Tax-Iv v. M/S. Medhadoot Drillers

HON’BLE THE CHIEF JUSTICE SHRI MADAN B. LOKURAND HON’BLE SHRI JUSTICE SANJAY KUMAR I.T.T.A.Nos.470 and 473 of 2011 Date: 31-01-2012 Between The Commissioner of Income Tax-IV,Hyderabad … Petitioner and M/s. Meghadoot Drillers,Nagarkurnool, (PO)Mahabubnagar … Respondent HON’BLE THE CHIEF JUSTICE SHRI MADAN B. LOKURANDHON’BLE SHRI JUSTICE SANJAY KUMAR I.T.T.A.Nos.470 and 473 of 2011 Order: (per Hon’ble the Chief Justice Shri Madan B. Lokur) The substantial question of law raised by the Revenue in theseappeals is whether the Tribunal was correct in law in holding that theprovisions of Section 44AD of the Income Tax Act, 1961 (for short ‘theAct’) are not applicable to the assessee. 2. The assessee was carrying on the activity of digging ofborewells. 3. In I.T.T.A.No.295 of 2011, a similar issue came up forconsideration of this Court, namely, whether the digging of borewellamounts to civil construction activity. 4. Learned counsel for the Revenue very frankly says that inthat case, the issue was held against the Revenue and in favour of theassessee and this Court came to the conclusion that the digging ofborewells does not amount to civil construction activity within themeaning of Section 44AD of the Act. 5. In the circumstances, no substantial question of law arises forconsideration in these appeals. 6. Accordingly, both the appeals are dismissed. ______________________ 31[st] January, 2012.Ak/Pnb ___________________ SANJAY KUMAR, J