ITAT rules operator and maintainer of infrastructure eligible for tax sops

The ITAT ruled in favor of Mundra, holding that operators and maintainers of infrastructure projects are eligible for tax benefits under relevant provisions. The decision clarifies ambiguities around eligibility of concessionaires and service providers in infrastructure projects. It underscores the government’s intent to incentivize private participation in infrastructure while ensuring clarity in tax benefits. The ruling provides relief to infrastructure operators, aligning judicial interpretation with policy objectives of encouraging PPP models.