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2019 (11) TMI 1041 - AT - Income TaxDisallowance of claim u/s 80IA on ICDs/CFS which are Inland ports - HELD THAT - Issue is covered in favour of the assessee in assessee s own case by the decision of the Hon ble Supreme Court 2018 (5) TMI 359 - SUPREME COURT Disallowance being the claim of deduction on account of advance lease rent paid for the land taken on long terms lease for business purposes on pro rata basis - similar claim had been allowed in earlier years - HELD THAT - It is pertinent to note here that the Revenue has allowed this claim of deduction on account of advance lease rent paid for the land taken on long term lease for business purposes on pro rata basis in the earlier assessment years i.e. 2009-10 and 2007-08 where the tribunal has remanded back the matter on this issue. AR also requested to remand back this issue for verification by the Assessing Officer. From the perusal of the Assessment Order it can be seen that the Assessing Officer has followed the principle of consistency in respect of earlier years assessment orders which now stands allowed in favour of assessee as per the directions of the Tribunal for A.Y. 2009-10 and 2007- 08. Therefore it will be appropriate to remand back this issue to the file of the Assessing Officer for proper adjudication Disallowance of deduction u/s 80IA on Rail System (Rolling Stock) - HELD THAT - CIT(A) has correctly noted that the issue in respect of disallowance of the claim of deduction u/s 80IA of the Act on rail system (rolling stock) is decided in favour of the assessee by the Tribunal in A.Y. 2003-04 2004-05 and 2005-06 which is now confirmed by the Hon ble Apex Court 2018 (7) TMI 1244 - SC ORDER . The facts are identical in the present assessment year as well and no distinguishing facts were pointed out by the Ld. DR. Therefore Ground No. 1 of Revenue s appeal is dismissed. Disallowance of depreciation on the assets retired from active use - HELD THAT - It is pertinent to note that the Tribunal for A.Y. 2010- 11 has followed the order for A.Y. 2008-09 which is approved by the Hon ble Delhi High Court 2017 (10) TMI 1324 - DELHI HIGH COURT confirmed by 2018 (7) TMI 640 - SC ORDER Depreciation on assets not registered in assessee s name - AO disallowed the claim on the ground that the depreciation is allowable on assets owned by the assessee and as the assessee did not own the building the depreciation was not allowable - HELD THAT - It is pertinent to note that the issue is already decided in favour of the assessee in earlier Assessment years by the Revenue authorities. The CIT(A) rightly allowed the claim as there is no distinguishing facts in the present assessment year. Therefore Ground No. 3 of the Revenue s appeal is dismissed.
Issues:
1. Disallowance of deduction u/s 80IA on ICDs/CFS 2. Disallowance of deduction on advance lease rent 3. Disallowance of deduction u/s 80IA on Rail System (Rolling Stock) 4. Disallowance of depreciation on assets retired from active use 5. Disallowance of depreciation on assets not registered in the name of the assessee Issue 1: Disallowance of deduction u/s 80IA on ICDs/CFS: The assessee, engaged in handling containerized cargo, claimed a deduction u/s 80IA for income from ICDs/CFS. The Assessing Officer disallowed the claim, stating that ICDs/CFS are not eligible infrastructure facilities. The CIT(A) partly allowed the appeal, citing previous favorable decisions. The Tribunal upheld the CIT(A)'s decision, noting consistency with earlier rulings and allowing the claim. Issue 2: Disallowance of deduction on advance lease rent: The Assessing Officer disallowed a deduction on advance lease rent paid for land on a pro rata basis, despite allowing similar claims in previous years. The CIT(A) partially allowed the appeal, remanding the issue for further verification by the Assessing Officer. The Tribunal upheld the remand, emphasizing the principle of consistency and the need for proper adjudication following natural justice principles. Issue 3: Disallowance of deduction u/s 80IA on Rail System (Rolling Stock): The Revenue appealed the disallowance of a deduction u/s 80IA on Rail System (Rolling Stock). The CIT(A) referenced previous tribunal and court decisions in favor of the assessee, dismissing the Revenue's appeal due to identical facts and lack of distinguishing points. The Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's appeal. Issue 4: Disallowance of depreciation on assets retired from active use: The Assessing Officer disallowed depreciation on assets retired from active use. The assessee argued that similar claims had been allowed in earlier years. The Tribunal referenced previous decisions favoring the assessee, ultimately dismissing the Revenue's appeal on this issue. Issue 5: Disallowance of depreciation on assets not registered in the name of the assessee: The Assessing Officer disallowed depreciation on assets not registered in the name of the assessee, claiming that depreciation is only allowable on assets owned by the assessee. The CIT(A) allowed the claim, citing previous favorable decisions and lack of distinguishing facts. The Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's appeal. In conclusion, the Tribunal partly allowed the assessee's appeal for statistical purposes and dismissed the Revenue's appeal, emphasizing consistency with previous decisions and the need for proper adjudication based on established legal principles.
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