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TMI Blog2023 (1) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... s taken up for scrutiny assessment, information was called for by the Assessing Officer. The petitioner, in response to the notices so received, had submitted a note in regard to the claim for deduction under Chapter VI-A which is on record. The reasons recorded by the AO do not at all elucidate as to what material was not disclosed fully and truly, failure of which had led to the income escaping assessment. This Court, in the case of Continental Warehousing Corporation Ltd. 2015 (5) TMI 656 - BOMBAY HIGH COURT was considering the order passed by the Tribunal which had held the assessee in that case entitled to the benefit under section 80-IA(4) of the Act based upon the earlier view expressed by a Special Bench of the Tribunal as also the Delhi High Court in Container Corporation of India Ltd. (Supra). The Special Bench had held that the case of Container Freight Station was similarly situate as that of an Inland Container Depot (ICD) inasmuch as both carried out similar functions of warehousing, customs clearance and transport of goods from its location to sea-ports and vice-versa. This Court in Continental Warehousing Ltd. (Supra) upheld the view of the Tribunal. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n u/s. 80IA(4) of the Act to the extent of Rs.4,17,247/- only. 3. A notice dated 26th March 2021 u/s. 148 of the Act was issued for reopening the assessment for the assessment year 2015-16. Return of income was filed by the petitioner on 3rd August 2021 in response to the notice u/s. 148 of the Act. Reasons were sought for reopening of the assessment. Reasons were finally provided vide letter dated 20th January 2022. The reasons recorded are reproduced hereunder : Reasons of opening : . 2. The benefit of deduction is allowable to an assessee only for Eligible Business specified in section 80-IA viz., Infrastructure facility or Telecommunication services which are defined and thus services defined in section 80-IA is only to be treated as Eligible Business. Further, infrastructure facility is defined in two places in the Act, i.e., in Explanation under section 80-IA(4)(i) as well as in Explanation (d) to section 10(23F) and clause (d) of the Explanation of clause (viii) of sub-section (1) of section 36. In 80-IA, other public facility as notified by Board was deleted vide Finance Act, 2001 w.e.f. 1.4.2002. Thus, Container Freight Station (CFS) is not an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat there has been failure on the part of the assessee to disclose fully and truly the material facts leading to the income escaping assessment. 8. It was further urged that the petitioner had made a full disclosure about its claim during the scrutiny assessment as also fled a detailed note along with requisite documents and also submitted the audit report and Form 10CCB for the year ended 31st March 2015 which was looked into by the Assessing Officer while leading to the passing of the order of assessment dated 10th March 2022. 9. It was further stated that this Court in Commissioner of Income Tax-II, Thane Vs. Continental Warehousing Corporation (Nhava Sheva) Ltd. [2015] 58 taxmann.com 78 (Bombay) has already settled that CFS is an inland port as it carries out functions of warehousing, customs clearance and transport of goods from its location to sea-port and vice-versa, and therefore, its income was eligible to deduction u/s. 80-IA(4) of the Act. It is stated that the Supreme Court in Commissioner of Income Tax, Delhi-1 Vs. Container Corporation of India Ltd. [2018] 93 taxmann.com 31 (SC) had dismissed the Civil Appeal filed by the Revenue, vide order, dated 24 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other documents on 30.09.2015. Form 10CCB along with Audit Report, Infrastructure Agreement and Customs Notification were already filed vide Paper Book No.3 on 3rd May 2017. 13. The reasons recorded by the Assessing Officer do not at all elucidate as to what material was not disclosed fully and truly, failure of which had led to the income escaping assessment. 14. In Hindustan Lever Ltd. Vs. R.B. Wadkar, Assistant Commissioner of Income-Tax and Others 2004 ITR 332 Vol.268, this Court held : .The reasons recorded should be clear and unambiguous and should not suffer from any vagueness. The reasons recorded must disclose his mind. The reasons are the manifestation of the mind of the Assessing Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide the link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which had held the assessee in that case entitled to the benefit under section 80-IA(4) of the Act based upon the earlier view expressed by a Special Bench of the Tribunal as also the Delhi High Court in Container Corporation of India Ltd. (Supra). The Special Bench had held that the case of Container Freight Station was similarly situate as that of an Inland Container Depot (ICD) inasmuch as both carried out similar functions of warehousing, customs clearance and transport of goods from its location to sea-ports and vice-versa. This Court in Continental Warehousing Ltd. (Supra) upheld the view of the Tribunal. 17. In the present case, even the objections raised by the Director General of Audit (Central) Mumbai leading to the initiation of reassessment proceedings would not anymore furnish a sound basis for alleging that the income had escaped assessment on account of a claim having been wrongly allowed under the said section. Be that as it may, we have no hesitation in holding that the notice impugned dated 26th March 2021 as also the order dated 10th March 2022, rejecting the objections, are unsustainable in law and are accordingly quashed. 18. The Petition is allowed ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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