2018 (1) TMI 1666 - HC - Income Tax

Entitlement for deduction u/s 80IA(4) - whether activities undertaken by the assessee do not fall within clause (d) of the Explanation to Section 80IA(4) defining the term infrastructure facilities? - HELD THAT - Appeal from the order of the Tribunal for the assessment year 2008 09 to this Court was dismissed in Commissioner of Income Tax Vs. Continental Warehousing Corporation (Nhava Sheva) Ltd. 2015 (5) TMI 656 - BOMBAY HIGH COURT In view of the above, the question as framed does not give rise to any substantial question of law. Thus, this Appeal is not entertained.

Summary

Issues:
Challenge to order of Income Tax Appellate Tribunal for Assessment Year 2009-10.
Interpretation of Section 80IA(4) of the Income Tax Act, 1961 regarding deduction eligibility for infrastructure facilities.
Applicability of Tribunal's decision for assessment year 2008-09.
Dismissal of Appeal due to lack of substantial question of law.

Analysis:
The High Court of Bombay heard an appeal challenging the order of the Income Tax Appellate Tribunal for the Assessment Year 2009-10. The main issue raised was whether the assessee was entitled to a deduction under Section 80IA(4) of the Income Tax Act, 1961, even though the activities did not align with the definition of infrastructure facilities as per the Explanation to Section 80IA(4). The Tribunal had previously dismissed a similar appeal for the assessment year 2008-09, which was referred to in the current case. The counsel for the Revenue acknowledged that an appeal related to the 2008-09 assessment year had been dismissed by the Court in a previous case. Consequently, the High Court found that the question posed did not present a substantial legal issue, leading to the dismissal of the current appeal.

In essence, the crux of the matter revolved around the interpretation of Section 80IA(4) of the Income Tax Act, specifically concerning the eligibility criteria for claiming deductions related to infrastructure facilities. The Tribunal's decision in a prior case for the assessment year 2008-09 was cited, indicating a consistent approach in similar matters. The Court's decision to dismiss the appeal was primarily based on the lack of any substantial legal question arising from the facts and circumstances presented. As a result, the appeal was not entertained, and the original order of the Tribunal stood.

Therefore, the High Court's judgment upheld the Tribunal's decision, emphasizing the importance of aligning activities with the statutory provisions for claiming deductions under the Income Tax Act. The dismissal of the appeal underscored the necessity for substantial legal issues to be raised for the Court's consideration, ensuring clarity and consistency in tax-related matters. The case serves as a reminder of the significance of adhering to legal requirements and definitions when seeking tax benefits, ultimately contributing to the overall integrity and effectiveness of the tax system.