Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 458 - AT - Income TaxDeduction u/s 80IA in - Sec. 115VT of the Income tax Act, 1961. - Assessee is eligible for deduction u/s 80IA in respect of profits derived from Kakinada Port, Jam Nagar Port and Dahej Port though the assessee did not enter into an agreement for operation and maintenance of infrastructure facility with the Central Govt/State Govt./Local Authority or Statutory Authority - Held that:- It was explained by the assessee to the assessing officer that the assessee company had entered into agreements for operation and maintenance of infrastructure facilities viz., ports with the developers thereof, who in turn had entered into agreements with specified authorities for the purpose of development, operation and maintenance of these ports. Further, under the original agreement between the specified authorities and the developers of the port, the developers had the power to sub contract the operation and maintenance of the port infrastructure as and where necessary. Further the deduction u/s. 80IA already granted to the assessee for the earlier assessment years as decided by the Tribunal by the order cited above, being so, we are not in a position to take any contrary view in this matter in view of the order of the Tribunal in the case of Micro Instruments Co. Ltd. vs. ITO [2008 (7) TMI 981 - ITAT CHANDIGARH] wherein it was held that the assessee's claim for deduction u/s. 80IB has been allowed in the initial assessment year and also thereafter, claim for such deduction cannot be denied for subsequent years without any justification. - we are of the opinion that claim u/s. 80IA has to be allowed . As regard addition u/s. 115VT of the Income tax Act, 1961 - Held that:- When we compute the book profit in accordance with the provisions of section 115JB of the Act, the assessee is required to credit the Tonnage Tax Reserve Account as per book profit shown in the audited P & L Account and Balance Sheet. There is no dispute in this case that audited P & L Account shows the book profit at ₹ 7,22,74,369. If there is no dispute regarding this profit shown in the audited P & L Account and Balance Sheet, the Assessing Officer is precluded from tinkering the same. Explanation (1) to subsection (2) of section 115JB also does not provide for increase of the profit shown in the P & L account by an amount like donation or prior period items which is said to be added by the lower authorities. We do not find these two elements i.e., donation and prior period items in the Explanation 1 to subsection (2) of section 115JB of the Act. Being so, in our opinion, the Assessing Officer cannot add these two items to the book profit for the purpose of determining the transfer of profit to Tonnage Tax Reserve Account. We also place reliance on the judgement of Supreme Court in the case of Apollo Tyres Ltd. vs. CIT(2002 (5) TMI 5 - SUPREME Court) - Decided against the assessee.
|