9911796707
TMI Blog2012 (6) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer has observed in the assessment order passed u/s 154 r.w.s. 254 of the Income-tax Act, 1961 [in short, the Act] dated 10.06.2009 that the crux of the issue was whether the income earned by the assessee through its bonded warehouse would take the character of income derived from 'Container Freight Station' eligible for deduction u/s 80IA(4) of the Act. He observed that the assessee company at Numbal village near Chennai carries on two activities, namely, operating a 'Container Freight Station' and 'Operating a bonded warehouse'. By Public Notice dated 28.8.1995, the Commissioner of Customs Madras declared u/s 8 of the Customs Act the premises of the assessee at Numbal Village as 'Customs Area' for the purpose of examination/loading and stuffing of export cargo into containers and appointed the assessee as custodians for cargo at 'Container Freight Station'. Thereafter, by Public Notice No. 87/96 dated 8.5.1996 and No. 169/96 dated 17.10.1996 No. 68/98 dated 18.5.1998, 160/98 dated 27.8.1998, No. 241/98 and 26/99 dated 16.4.1999, additional areas were declared as 'Customs Area' for handling import cargo and export cargo. 4. Similarly, by Notification No. 23 dated 26. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terial available on record. First of all, we would like to make an observation that by not following the directions of the Income-tax Appellate Tribunal which were very well available before the Assessing Officer at the time when he was giving effect to the Commissioner of Income-tax's direction, is a serious procedural lapse on his part. When the order of the Commissioner of Income-tax had already merged with that of the Income-tax Appellate Tribunal, the directions given by the Commissioner of Income-tax no longer survived and the Assessing Officer has simply tried to flog a dead horse. His remarks are simplistic and didactic, which carry no meaningful result. It was argued by the learned authorised representative that after making deep investigation, the learned Commissioner of Income-tax (Appeals) has found, similar claim made by the assessee in other years, as a valid claim against which finding the Revenue is in appeal against allowance of travelling expenditure as apportioned to CFS activity. We have seen the common order passed by the same learned Commissioner of Income- tax (Appeals) for the assessment years 2004-05 and 2005-06 dated February 26, 2009, which is also a subj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a has released a set of specific guidelines containing three parts, viz., part A, part B and part C for the above purpose. The guidelines essentially lays down basic conditions one has to comply with in order to set up a CFS and operate the same. 3.11 Part C of the above guidelines governs the procedure for approval of CFS and its implementation. In terms of the said policy guidelines issued by the Ministry of Commerce, Government of India the appellant-company made an application and after due examination of the application, the Ministry of Commerce, Government of India through its Notification No. 16/4/95-Infra 1 dated February 23, 1995 has notified the setting up of a container freight station at Numbal by the appellant-company. The notification referred to above clearly stipulates that the conditions given in part A and part B of the guidelines referred to above shall be satisfied and in addition the Notification has laid down certain minimum facilities which are required at the CFS. The said minimum level of facilities required under clause 'C' reads as follows : 'The warehousing facility separately for exports and imports and long-term storage of bonded cargo.' Here i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture as provided in the notification and as such having adequate warehousing facility is an essential part of the minimum level of infra- structure requirements. 3.13 Here it may be mentioned that as per part B of the guidelines for setting up inland container depot (ICD) and container freight station (CFS) in India the following infrastructure should be available at the ICDs/CFS. Provision of standard pavement for heavy duty equipment for use in the operational and stacking area of the terminal. In cases where only chassis operation is to be performed, the pavement standard could be limited to that of a highway. Office holding for ICD, customs office and a separate block for user agencies equipped with basic facilities. Ware housing facility, separately for exports and imports and long-term storage of bonded cargo. Gate complex with separate entry and exit. 3.14 Now as can be seen from the above notification of Ministry of Commerce and the Guidelines the approval is subject to the creation of minimum level of infrastructure facilities. Hence it is an essential part of the CFS operation business of the appellant. Further, the Commissioner of Customs has also notified the stipula ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
