1. Trade Circle Enterprises LLC, UAE is the applicant and the relevant facts stated in the application are as under:—

(1) The applicant is a company registered in UAE and is engaged in the business of developing and investing in the infrastructure and real estate sector.

(2) The applicant intends to invest in a 100% subsidiary company in India under the prevailing FDI regulations.

(3) This Indian subsidiary company of the applicant intends to setup consortium by way of partnership firm under the Partnership Act, 1932 with another Indian Company namely, MEP Infra Private Limited (MEPPL).

(4) This consortium (partnership firm) proposes to acquire the undertaking of MEP Infra Private Limited which is engaged in the business of operating and maintaining 20 road bridges in Mumbai and in consideration it collects toll at five Mumbai entry points pursuant to a contract dated 19th November, 2010 entered into with the Maharashtra State Road Development Corporation, a Corporation (MSRDC) owned by the Government of Maharashtra ('Undertaking'). The said undertaking comprises of various bridges constructed within Mumbai and the last bridge was completed on 30th September, 2006.

(5) The operating of toll roads referred to above was started by MSRDC from dates prior to awarding contract for operating and maintenance to MEPPL by the state Government of Maharashtra. MEPPL has been awarded the said contract with effect from 19th November, 2010 for a period of 16 years.

(6) The present Undertaking is eligible for tax deduction of 100% of its profits and gains from such undertaking for a period of 10 consecutive assessment years out of the 20 assessment years as per provisions of Section 80IA(4)(i) of Income tax Act, 1961 ('Act'). MSRDC and MEPPL have not claimed any income tax benefit under the said section.

(7) The above mentioned transaction is expected to be completed by the month of December, 2011, subject to necessary approvals.

2. The applicant seeks ruling from this Authority on the following questions:—

(i) Whether on facts and circumstances of the case, the transfer of Undertaking from MEP Infra Toll Road Private Limited('MEPPL') to the partnership firm in which the Applicant is considering to join as a partner through its Indian subsidiary, would in any manner, affect the allowability of deduction under section 80IA(4)(i) to the partnership firm.

(ii) Whether the newly formed partnership will be considered as a consortium of companies and be eligible for deduction in respect of profits and gains from undertakings or enterprises engaged in infrastructure development etc. which is equal to hundred percent of the profits and gains derived from such business for ten consecutive assessment years out of twenty years?

(iii) Whether the twenty years period referred to in the proviso to section 80IA(2) of the Act, it to be reckoned from the date when the MEPPL (whose undertaking which is intended to be transferred to the partnership firm) entered into the contract with MSRDC for operation and maintenance of bridges, i.e.. the year 2010-11 or from the date when the Government first started the operation and maintenance of the last bridge, i.e., the year 2006-07.

(iv) Without prejudice, if the date of commencement of operation of the bridges by the State Government is to be considered for the purposes of determining the period of 20 years in terms of section 80IA(2) of the Act, since there are in all 20 bridges (toll of which is collected at 5 entry points) which form part of the Undertaking under contract granted to MEPPL and each of them was completed at a different date between 1999 to 2006 and operations and maintenance of each of them was started originally by the state government at a different date, will the year of completion of last bridge be treated as the year in which the undertaking develops and begins to operate any infrastructure facility or 20 bridges will be treated as 20 separate infrastructure facilities/undertakings and, therefo