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2017 (10) TMI 1614 - AT - Income TaxDeduction u/s.80IA(4) - operating of Container Freight Station (CFS) - scope of term infrastructure facilities - Denial of deduction as CFS set up by assessee does not fall within the meaning of Port as envisaged under the definition of infrastructure facility in Explanation to Section 80IA(4) - whether the activities undertaken by the assessee fall within clause (d) of Explanation to Section 80IA(4) defining the term infrastructure facility ? - HELD THAT - The Tribunal for assessment year 2008-09 2012 (8) TMI 893 - ITAT MUMBAI by following the decision of Special Bench in the case of M/s. All Cargo Global Logistics Ld. 2012 (7) TMI 222 - ITAT MUMBAI(SB) held that the assessee is eligible for claiming deduction u/s. 80IA(4) of the Act. The aforesaid decision of the Tribunal has been upheld by the Hon ble Bombay High Court in appeal filed by Revenue titled CIT Vs. Continental Warehousing Corporation 2015 (5) TMI 656 - BOMBAY HIGH COURT The dispute whether Container Freight Station set up within precincts of the port, considering its proximity to sea port fall within the meaning of infrastructure facility and admissible for deduction u/s. 80IA(4), has been decided in favour of the assessee by Hon ble Jurisdictional High Court in assessee s own case. Further, the Co-ordinate Bench of Tribunal in immediate preceding assessment years i.e. assessment years 2009-10 2014 (11) TMI 1262 - ITAT PUNE 2010-11 2016 (10) TMI 1367 - ITAT PUNE have taken a consistent view holding assessee is to be eligible for claiming deduction u/s.80IA(4) of the Act. We find no reason to take a divergent view. Thus, we find no merit in the appeal filed by Revenue and the same is dismissed.
Issues:
- Eligibility for claiming deduction u/s. 80IA(4) of the Income Tax Act, 1961 for a Container Freight Station (CFS) set up by the assessee within the port area. Analysis: 1. The appeal was filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-2 for the assessment year 2011-12, challenging the eligibility of the assessee to claim deduction u/s. 80IA(4) of the Income Tax Act, 1961 for a Container Freight Station (CFS) set up by the assessee within the port area. The Assessing Officer disallowed the deduction claimed by the assessee amounting to Rs. 37,76,20,755/- under section 80IA(4) on the grounds that the CFS did not fall within the definition of "port" as per the Explanation to Section 80IA(4) of the Act. 2. The Commissioner of Income Tax (Appeals) allowed the claim of the assessee based on the decision of the Hon'ble Bombay High Court in the assessee's own case for the assessment year 2008-09 and a Special Bench decision in the case of M/s. All Cargo Global Logistics Ltd. Vs. DCIT. The Revenue raised grounds in the appeal, contending that the activities of the assessee did not fall within the definition of "infrastructure facility," the assessee had not entered into an agreement for developing the facility, and a certificate issued by JNPT was later withdrawn. 3. The assessee argued that the issue raised by the Revenue was already settled in earlier assessment years by the Tribunal and the Hon'ble Bombay High Court in favor of the assessee. The Mumbai Bench of the Tribunal had previously held that the CFS set up by the assessee qualified as an "infrastructure facility" eligible for deduction u/s. 80IA(4). The Tribunal noted that the grounds raised by the Revenue in the present appeal were similar to those in earlier years, and there had been no change in facts. The Tribunal upheld the consistent view that the assessee was eligible for claiming the deduction. 4. The Tribunal rejected the adjournment request by the Department, stating that the issue was no longer open for debate as it had been decided in favor of the assessee by the Hon'ble Jurisdictional High Court and the Tribunal in previous years. The Tribunal found no reason to deviate from the consistent view taken and dismissed the appeal of the Revenue, upholding the impugned order allowing the deduction u/s. 80IA(4) for the assessee's CFS set up within the port area. 5. In conclusion, the Tribunal upheld the impugned order, dismissed the appeal of the Revenue, and pronounced the decision on October 25, 2017.
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