1. These appeals are filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short 'the Act3) against the order dated 30th April 2013 made in ITA Nos.263, 930 and 931/Bang/2012 passed by the. Income Tax Appellate Tribunal, Bangalore Bench A' (for short 'the Tribunal for the assessment years 2006-07, 2007-08 & 200809, whereby the Tribunal has set aside the order passed by the Commissioner of Income Tax, (Appeals)-III, Bangalore (for short 'the First Appellate Authority*), wherein the Appellate Authority by its order dated 16-12 -2011 upheld the order of Assessing Officer and hold that the respondent-assessee is not eligible for deduction under Section 80-IA(4) of the Act.

2. The brief facts of the case are as follows:

The respondent-assessee is a Private Limited Company engaged in the business of Outdoor Advertisement, Media Advertising and Development of Infrastructure. The assessee filed the return of income claiming deduction under Section 80-IA(4) of the Act, contending that the assessee-Company is involved in infrastructure development. The Assessing Authority issued notice under Section 142(2) of the Act calling upon the assessee to substantiate their claim of deduction under Section 80-IA(4) of the Act. The authorized representative of the assessee made available the records and also contended that the respondent- assessee entered into an agreement with local self-Government i.e. Bruhath Bangalore M ah an agar a Palike (for short 'the BBMF') for construction of bus shelter, erection of lamp pests, beautification of road medians, construction of the foot bridge near ISCKON temple and maintenance of the same. The expenditure incurred for the same has to be recouped by utilizing these bus shelters, lamp posts, road medians and foot bridge, for their advertisement business. Since the assessee-Company is involved in the development of infrastructure, it is entitled for deduction under Section 80-IA(4) of the Act.

2.1 The Assessing Officer after examining the matter in detail and verifying the clauses of agreement entered into between the assessee and the 6BMP was of the view that construction of bus shelters, installation and maintenance of street lights and beautification of the center road medians is for earning income by putting up the advertisement boards on the same which would not amount to infrastructure development. The work carried on by the assessee is in the nature of work contract. The income is derived by displaying advertisement hoardings on the road medians, bus shelters and light poles. Hence, the Assessing Authority by its order dated 31-12-2000 held that the assessee is not eligible to claim deduction under Section 80-IA of the Act and by its order dated 13-12-2010 and disallowed the claim of deduction of income tax.

2.2 Being aggrieved by the order passed by the Assessing Authority, the respondent-assessee preferred an appeal before the First Appellate Authority challenging the denial of deduction on various grounds. The First Appellate Authority on verification of the contentions raised by the respondent-assessee found that though the Memorandum of Association of the respondent-assessee contains provision for undertaking infrastructure development, the assessee is essentially an advertisement company and has not invested huge funds on long term construction activities. The work carried out by the respondent-assessee is not in the nature of construction work referred to in the explanation to Section 80-IA (13) of the Act. Hence, confirmed the order passed by the Assessing Authority and dismissed the appeal by its order dated 16-12-2011.

2.3 The assessee being aggrieved by the order passed by the First Appellate Authority preferred an appeal before the Tribunal. The Appellate Tribunal by its order dated 30-04-2013, allowed the appeal filed by the assessee holding that the assessee is eligible to claim deduction under Section 80-IA(4) of the Act. The Tribunal was of the view that a bu