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2017 (7) TMI 1261 - AT - Income TaxEligibility for deduction claimed u/s 80IA(4) - assessee is a State Government undertaking as set up Inland Container Depot (ICD) and Container Freight Station (CFS) for handling bonded warehouse on the leasehold land - AO disallowed the claim on the ground that the assessee has failed to furnish a certificate from the concerned port authorities certifying that the structure at the port for storage, loading and unloading etc. form part of Port - Held that:- As decided in assessee's own case when the proposal to set up a CFS has been accepted by the Government, there is no requirement of either a specific agreement as contende. Nor can it be said that by virtue of any certification of the JNPT and its subsequent withdrawal the position undergoes any change. Once the facility is nothing but a infrastructural facility set up and within the precincts of the port, then, considering and even otherwise having considered its proximity to the sea port and its activities that we have no doubt and it can be safely concluded that the deduction admissible under sub-section (4) of section 80-IA can be claimed by both the ICDs and CFSs.- Decided in favour of assessee Disallowance u/s. 43B - land revenue charges which have been bifurcated under two heads and includes prior period expenses - Held that:- As during the year under consideration the said sum has been reversed and its reference can be found in annexure IX of tax audit report for the year and hence, as the entire amount is reversed it automatically amounts to offering income in the year of reversal by claiming the expenses less to that extent. The aforesaid fact becomes more evident from the ledger extract of prior period expenses, ledger extract of land revenue charges and the outstanding expenses account including the journal entries of the said reversal. The Assessing Officer has disallowed the aforesaid amount without making any enquiry or verification in this regard. The appellant during the year in any case has already disallowed the statutory payments not paid during A.Y. 2011-12 as is evident from the computation of income (on account of various statutory heads). Thus, the disallowance made by the Assessing Officer is not in accordance with the fact of the case - Decided against revenue
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