2016 (4) TMI 1359 - AT - Income Tax

Deduction u/s.80IA(4) - claim denied as assessee company is not an Inland Port (infrastructure facility) as per the Explanation to Section 80IA(4) - HELD THAT - As decided in assessee s own case 2014 (8) TMI 975 - ITAT PUNE Container Freight Station (CFS) run by the respondent-assessee is eligible for deduction under Section 80IA of the Act as an infrastructure facility - Decided in favour of assessee.

Summary

Issues:
- Appeal against the order of CIT(A)-Mumbai for assessment year 2010-2011.
- Disallowance of deduction u/s.80IA(4).

Analysis:
1. The appeal filed by the revenue challenges the deletion of disallowance of deduction u/s.80IA(4) by the CIT(A)-Mumbai for the assessment year 2010-2011.

2. The assessee, engaged in developing infrastructure facilities, claimed deduction u/s.80IA(4) which was initially declined by the AO on the grounds of not being an 'Inland Port' as per the Explanation to Section 80IA(4) of the Act.

3. The CIT(A) allowed the assessee's claim based on previous tribunal decisions and the decision of the Hon'ble Delhi High Court, which held that income of Inland Container Depots (ICDs) is eligible for deduction u/s.80IA(4)(i) of the IT Act.

4. The Tribunal, after considering the arguments and precedents, upheld the CIT(A)'s decision, citing that the issue was covered in favor of the assessee by previous tribunal decisions and the decision of the Hon'ble Delhi High Court. The Tribunal found no infirmity in the CIT(A)'s order.

5. Consequently, the appeal of the revenue was dismissed, affirming the allowance of the deduction u/s.80IA(4) for the assessee for the assessment year in question.