2013 (11) TMI 1590 - AT - Income Tax

Deduction under Section 80-IA entitlement - CFS run by the assessee is entitled for the benefit of deduction under Section 80-IA.

Summary

Issues:
- Whether income from warehousing can be considered as part of CFS income for granting relief under Section 80-IA.

Analysis:
The judgment involves two appeals filed by the Revenue against the orders of the Commissioner of Income Tax (Appeals) for the assessment years 2008-09 & 2009-10. The common issue raised in both appeals is whether the income from warehousing should be treated as part of Container Freight Station (CFS) income for the purpose of granting relief under Section 80-IA. The Revenue argued that the CFS of the assessee does not fall under the category of "Port" or "Inland Port" as per the Income-tax Act, and thus, the relief under Section 80-IA should not have been allowed by the Commissioner of Income Tax (Appeals).

The Tribunal referred to a previous decision in the assessee's own case for the assessment years 2003-04 to 2005-06, where it was held that the CFS set up by the assessee is entitled to the benefit of deduction under Section 80-IA. Although the Revenue relied on a judgment of ITAT, Chennai Bench in another case, the Commissioner of Income Tax (Appeals) noted that the said decision had been overturned by the Hon'ble Delhi High Court. Consequently, the only binding decision available was the one rendered by ITAT, Chennai Bench in the assessee's own case for the earlier assessment years. Therefore, the Commissioner of Income Tax (Appeals) was justified in following the previous order and allowing the relief under Section 80-IA.

In conclusion, the Tribunal dismissed both appeals filed by the Revenue, upholding the order of the Commissioner of Income Tax (Appeals) and affirming the entitlement of the assessee to the benefit of deduction under Section 80-IA. The judgment was pronounced in open court on the 21st of November, 2013, in Chennai.