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TMI Blog2016 (9) TMI 1579X X X X Extracts X X X X X X X X Extracts X X X X ..... t Station established by the assessee is an extended arm of the port, therefore, eligible for exemption under Section 80-IA of the Act. This Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. - Decided against revenue. - ITA Nos.1522 & 1523/Mds/2016 - - - Dated:- 23-9-2016 - Shri N.R.S. Ganesan, Judicial Member And Shri A. Mohan Alankamony, Accountant Member Appellant by: Shri Supriyo Pal, JCIT Respondent by: Sh. R. Vijayaraghavan, Advocate ORDER N.R.S. Ganesan, Both the appeals of Revenue are directed against the respective orders of the Commissioner of Income Tax (Appeals)-15, Chennai, dated 11.03.2016 and pertain to assessment years 201011 and 2011-12. Since common issue arises for consideration, we heard both the appeals together and disposing of the same by this common order. 2. The only issue arises for consideration is deduction under Section 80-IA of the Income-tax Act, 1961 (in short 'the Act'). 3. Shri Supriyo Pal, the Ld. Departmental Representative, submitted that the assessee claimed deduction under Section 80-IA of the Act in respect of Container Frei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction under Section 80-IA of the Act, what is required is certificate from the concerned port authority to the effect that the Container Freight Station is a part of the port. In this case, according to the Ld. counsel, the Chennai Port Trust authorities certified that the Container Freight Station established by the assessee is an extended arm of the port. The CBDT does not say that there is a need for agreement between the assessee and the Government for the purpose of claiming deduction under Section 80-IA of the Act. In view of this circular, according to the Ld. counsel, the CIT(Appeals) has rightly allowed the claim of the assessee. 5. We have considered the rival submissions on either side and perused the relevant material available on record. We have carefully gone through the provisions of Section 80-IA(4) of the Act which reads as under:- (4) This section applies to- (i) any enterprise carrying on the business of (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining any infrastructure facility which fulfils all the following conditions, namely :- (a) it is owned by a company registered in India or by a consortium of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y undertaking which develops, develops and operates or maintains and operates an industrial park or special economic zone notified by the Central Government in accordance with the scheme framed and notified by that Government for the period beginning on the 1st day of April, 1997 and ending on the 31st day of March, 2006 : Provided that in a case where an undertaking develops an industrial park on or after the 1st day of April, 1999 or a special economic zone on or after the 1st day of April, 2001 and transfers the operation and maintenance of such industrial park or such special economic zone, as the case may be, to another undertaking (hereafter in this section referred to as the transferee undertaking), the deduction under sub-section (1) shall be allowed to such transferee undertaking for the remaining period in the ten consecutive assessment years as if the operation and maintenance were not so transferred to the transferee undertaking : Provided further that in the case of any undertaking which develops, develops and operates or maintains and operates an industrial park, the provisions of this clause shall have effect as if for the figures, letters and words 31st day o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80-IA(4) does not say that there is no need for any agreement. Pre-condition for claiming deduction under Section 80-IA of the Act is that there should be an agreement between the assessee and the Central Government or State Government for developing or operating or maintaining or developing, operating, maintaining a new infrastructure facility. Therefore, the provisions of Income-tax Act very clearly says that there is need for agreement between the assessee and the Government for establishing a new infrastructure facility. 6. We have carefully gone through the Circular issued by the CBDT in Circular No.10 of 2005 which reads as follows:- CIRCULAR NO.010 OF 2005 DT. 16TH DECEMBER, 2005 Sub Definition of port as infrastructural facility for the purpose of sections 10(23G) and 80-IA of the Income-tax Act, 1961 16/12/2005 EXEMPTIONS / DEDUCTIONS SECTION 10(23G), 80-IA Reference is invited to Board s Circular No.793 dated 23rd June, 2000 [(2000) 161 CTR (St) 21] and amendment in section 80-IA by the Finance Act, 2001. 2. Port , for the purposes of sections 10(23G) and 80-IA of the Income-tax Act, 1961, includes structures at the ports for storage, load ..... X X X X Extracts X X X X X X X X Extracts X X X X
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