I-T DEPARTMENT TO RECOVER Rs. 1000 CRORE

The Income-Tax department will recover close to Rs. 1,000 crore from infrastructure development companies, after a recent tax tribunal order clarified that the exemption available for infrastructure development cannot be extended to contractors or subcontractors. The order puts an end to the practice of contractors and subcontractors claiming benefits under section 80 IA of Income-tax Act, which was incorporated to encourage investment in infrastructure projects.