9911796707
TMI Blog2021 (4) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the term Inland Ports' is used differently under Section 80-IA of the IT Act. All these facts taken together clear the position beyond any doubt that the ICDs are Inland Ports and subject to the provisions of the 17 Section and deduction can be claimed for the income earned out of these Depots. The actual computation is to be made in accordance with the different Notifications issued by the Customs department with regard to different ICDs located at different places. - Decided in favour of assessee. Disallowance of deduction on account of lease rent paid in advance against the land taken on longterm lease for business purposes on pro rata basis - HELD THAT:- As relying on assessee's previous year For this assessment year also, Ld. CIT DR did not object for the issue being set aside with a direction clearly bringing on the facts whether it is the claim of depreciation or whether the claim of allowability of expenditure. Recording the same we set aside the findings of the Ld. CIT(A) on this issue and remained the same to the file of the learned Assessing Officer with a direction to the assessee to furnish the complete details of the claim of the assessee clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case as could be culled out from the record are that the assessee company is engaged in the business of handling and transportation of containerized cargo. For the assessment year 2014-15, assessee filed the return of income on 23/9/2014 declaring taxable income of ₹ 7 88, 18, 00, 850/- after claiming deduction under chapter VI-A of the Income Tax Act, 1961 (for short the Act ) amounting to ₹ 3 83, 27, 14, 511. Assessment under section 143(3) of the Act was, however, complete by order dated 6/12/2016 by making certain additions, which insofar as these 2 appeals are concerned include disallowance of deduction amounting to ₹ 52, 49, 79, 828/-claimed under section 80IA of the Act in respect of the income from ICDs/CFS; ₹ 5, 46, 47, 887/-by disallowing the deduction on account of amortization of advance lease rent paid for the land taken on long-term lease for the business purpose; and ₹ 3 30, 76, 84, 683/- disallowing the deduction under section 80IA of the Act on Rail System (Rolling Stock). 3. In appeal, Ld. CIT(A) deleted the disallowance of deduction claimed to the tune of ₹ 3 30, 76, 84, 683/-on Rail System (Rolling stock), but confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reason why the word airport is found separately in the Explanation. Considering the nature of work that is performed at ICDs, they cannot be termed as Ports. However, taking into consideration the fact that a part of activities that are carried out at ports such as custom clearance are also carried out at these ICDs, the claim of the respondent herein can be considered within the term Inland port' as is used in the Explanation. It is significant to note that the word Inland Container Depots' was first introduced in the definition of Customs Port' as is given in Section 2(12) of the Customs Act, 1962, through amendment made by the Finance Act, 1983 with effect from 13.05.1983. 22. The term Inland Port' has been defined nowhere. But the Notification that has been issued by the Central Board of Excise Customs (CBEC) dated 24.04.2007 in terms holds that considering the nature of work carried out at these ICDs they can be termed as Inland Ports. Further, the communication dated 25.05.2009 issued on behalf of the Ministry of Commerce and Industry confirming that the ICDs are Inland Ports, fortifies the claim of the respondent herein. Though both the Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel submitted that this issue is also covered by order of this Tribunal in assessee's own case for Assessment Year 2008-09 and 2009-10 wherein following view has been taken: 52. We have carefully considered the rival contentions and also noted the para extracted by Ld CIT(A) in para No. 7.1 of his order of AY 2004-05. The ld Assessing Officer has followed the decision of Hon'ble Bombay High Court in case CIT Vs. Indian Oil Corporation wherein premium paid on leasehold land is disallowed and also it was held that such premium said cannot be included in the cost of the building constructed thereon. The Ld.CIT(A) followed his own decision for AY 2004-05 which was in respect of amortization of leasehold land and it is not the issue of deprecation on leasehold land. The decision of Hon'ble Delhi High Court relied upon by the Ld AR also do not apply to the facts of the ease because that decision also do not apply to the leasehold land. We are conscious about the difference between amortization of leasehold premium paid and equalization of lease charges and therefore both cannot be compared. It is also not ascertained by the lower authority whether the claim of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of Ld. CIT(A) and ITAT in allowing the deduction, but observed that it was not acceptable to the Revenue and since the Department filed appeal before the higher appellate forum is, the issue had not attained finality. Revenue, however, did not produce any material before us to contradict the observations of the Ld. CIT(A) that the Department had accepted the orders of the ITAT for the assessment year 2003-04 and no appeal was filed before the Hon ble High Court. Should be any appeal before the Hon ble High Court, the Revenue should have submitted the details thereof. 14. Since a consistent view has been taken by the appellate authorities right from Assessment Year 2003-04 and for all the successive years such disallowance was deleted, in the absence of any material to show that such view taken by the appellate authorities had not attained finality, we find it difficult to deviate from such consistent view. While respectfully following the view taken by the Tribunal in assessee s own case for the assessment year 2003-04 and also the subsequent deletions made by the appellate authorities, we hold that this disallowance cannot be sustained has to be deleted. We therefore, dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
