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TMI Blog2015 (3) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... ted for scrutiny and notice u/s.143(2) was issued to the assessee on 25-08-2010. The assessee is owning and maintaining a Container Freight Station [CFS] at Haldia, West Bengal. In the return of income, the assessee claimed deduction u/s.80IA(4)(i) of the Income Tax Act, 1961 (herein after referred to as 'the Act'). The Assessing Officer during assessment proceedings observed that to be eligible for claiming deduction u/s.80IA(4)(i), the assessee should carry on the business of developing or operating and maintaining or developing, operating and maintaining any infrastructure facility. Further, the assessee should have entered into an agreement with the Central Government or State Government or a local authority or any Statutory Body for de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal in the case of All Cargo Global Logistics Ltd., Vs. DCIT reported as 18 ITR (Trib) 106 (Mum) (SB). On the issue of agreement with the Government or any Statutory Body for being eligible to claim deduction u/s.80IA(4)(i), the ld.Counsel submitted that the Ministry of Commerce and Industry vide letter dt.27-05-2003 approved the proposal of the assessee for setting up of CFS at Haldia. According to the approval letter, the assessee was required to execute necessary bond and guarantees to carry out its services. The assessee duly complied with all the terms and conditions mentioned in the said letter from the Department of Commerce, Infrastructure Division, Ministry of Commerce and Industry. It was thereafter, the assessee was noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of section u/s.80IA(4)(i). The ld.DR prayed for dismissal of the appeal of the assessee. 5. Both sides heard. We have also perused the orders of the authorities and the decisions on which the ld.Counsel for the assessee has placed reliance. A close reading of the provisions of section 80IA(4) makes it clear that, for claiming deduction u/s.80IA(4)(i), following conditions have to be satisfied: i. The undertaking should carry on the business of (a) developing or (b) maintaining and operating or (c) developing, maintaining and operating any infrastructure facility; ii. The undertaking should be owned by an Indian company; iii. There should be an agreement with the Central Government; and iv. The undertaking should start operatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en. It was clarified: "Container Freight Stations (CFSs) are 'customs area' attached to a port. The work related to customs is performed at these inland container depots/Container freight stations. Accordingly, inland container depots and Container freight stations (i.e., customs area port) are 'inland ports' ". Another letter referred to in the order of the Hon'ble High Court is from the Department of Commerce, Infrastructure Division, Ministry of Commerce and Industry. In the said letter the status of CFS was clarified. The relevant extract is reproduced as under: "3. The matter has been examined in this Department and it is clarified that inland container depots/container freight stations are inland ports. The Central Board of Dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is entitled to claim the benefit of section 80IA(4)(i)? The assessee had made an application for setting up of CFS at Haldia. In response to the application of assessee, the Department of Commerce, Infrastructure Division, Ministry of Commerce and Industry approved the proposal of the assessee for setting up of CFS at Haldia for handling import/export of cargo subject to execution of certain documents and compliance of other terms and conditions as stated in the letter. The ld.Counsel for the assessee has placed on record letter dt.27-05-2003 from the Ministry of Commerce and Industry permitting the assessee to set up CFS at Haldia. The contents of the letter are reproduced herein below: No.16/6/2003-Infra-I Government of India M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facility to be set up shall be full computerized, with EDI compatibility and a minimum complement of equipment and accessories as necessary shall be made available at the facility. The indicative list of equipment/accessories considered necessary is annexed. The status regarding confirmation of the installation/ availability of the items shall be furnished to the appropriate authorities to facilitate issue of requisite notification. 3. Please acknowledge receipt of this letter. Yours faithfully, Sd/- (N.G.Biswas) DIRECTOR A perusal of clause 'b' of the above letter shows that the assessee was required to execute necessary bond and guarantees with the concerned Commissioner of Customs and Central Excise. It was only on the compliance o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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