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TMI Blog2014 (7) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... of income from sale of water and miscellaneous income was justified as the same was part of operation and maintenance activity of the assessee at the jetty. So far the income on account of storage facility is concerned, in the earlier assessment year also, CIT(A) had put a specific query to the assessee as to whether the storage facility was owned by the assessee and whether the same was part of the infrastructure facility of the jetty – assessee submitted that the storage facility was adjacent to the jetty and the assessee was paying ₹ 5000/- per month to M/s. Hindalco Industries Ltd as license fee for the said storage facility – thus, the storage facility was not part of the infrastructure facility of the jetty and even the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aritime Board for development, maintenance and operation of Jetty (Port) at Dahej, Gujarat. For the relevant assessment year, the assessee claimed deduction under section 80IA on account of infrastructure development of the above said port. 4. The Assessing Officer (hereinafter referred to as the AO) during the assessment proceedings observed that the assessee had claimed exempt income of ₹ 17,97,712/- from sale of water, ₹ 51,535/- from storage facility and ₹ 44,640/- as transportation charges totaling ₹ 18,93,887/-. He observed that the said income did not qualify for deduction under section 80IA because of the fact that the same was neither derived from nor had any connection with the business activity of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgo of other nearby jetty is handeled at our jetty we charge them BH Port charges. Misc. Income :- (Rs.3,30,760/-) The income when non regular cargo of other nearby jetty is handeled at our-jetty we charge them for using our jetty. Sale of water :- (Rs.17,97,712/-) The income received for supply of water to Cargo ships bearthing at our jetty for their engine, cleaning and other misc. purpose. Storage Facility :- (Rs.51,535/-) The Income is from Commercial cargo unloaded at our jetty and not lifted by the parties during the time allowed as per the terms of the contract. Transportation charges:- (Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that so far the income from sale of water is concerned, the same had been earned by the assessee for supply of water to cargo ships for their engine cleaning and other miscellaneous purposes and the same in our view was a part of the activity of operation of the jetty. Similarly, as explained by the assessee, the miscellaneous income had been earned by the assessee from the non regular cargo of other nearby jetty which had been handled at the assessee's jetty for which the assessee had charged them for use of its jetty. Hence, in our view the claim of deduction on account of income from sale of water and miscellaneous income was justified as the same was part of operation and maintenance activity of the assessee at the said jetty. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art of infrastructure facility development at the jetty. 9. The ld. A.R. has brought to our attention that even for the subsequent year 2010-11, the ld. CIT(A), vide his order dated 30.12.13, has allowed the claim of the assessee on account of income from sale of water and miscellaneous income. However, deduction claimed in respect of income from storage and warehouse facility has been disallowed by him. 10. In view of our above observations, the claim of the assessee in respect of miscellaneous income and income from sale of water is hereby allowed whereas, the claim of deduction on account of income from storage facility and transportation charges is hereby disallowed. 11. In the result, the appeal of the assessee is partly allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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