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2016 (10) TMI 497 - AT - Income TaxDeduction under section 80IA(4) - eligibility - whether the Cargo facility being operated and maintained by the assessee is an ‘infrastructure facility’ within the meaning of section 80IA(4) of the Act? - Held that:- Under the Explanation to section 80IA(4), the definition of ‘infrastructure facility’ includes airport within its scope and the cargo facility is an integral part of the airport. The Coordinate Bench of this Tribunal at Bangalore in the case of Menzies Aviation Bobba (Bangalore) Pvt. Ltd (2015 (11) TMI 401 - ITAT BANGALORE ) has held the ‘cargo facility’ to be infrastructure facility eligible for deduction u/s 80IA(4) of the Act. Further, it is seen that GHIAL has constructed the Cargo building as per the specification of the Menzies and Menzies has provided the facilities at the cargo building and while GHIAL has leased out the cargo terminal to the assessee, Menzies has leased the facilities to the assessee and it is the responsibility of the assessee to operate and maintain the cargo facility in accordance with the obligation of GHIAL to operate and maintain the facility by virtue of the concession granted by the Govt. of India. Each assessee is eligible to claim deduction u/s 80IA(4)(i) of the Act only in relation to the activity carried on by it and there cannot be any duplication of the claim. Therefore, we are of the opinion that the ‘Cargo facility’ operated and maintained by the assessee is infrastructure facility eligible for deduction u/s 80IA(4) of the Act. Assessee has not entered into any agreement with the Central Govt., or State Govt. or local authority or a statutory body as provided u/s 80IA(4) - Held that:- The assessee has applied to the Government of India, Ministry of Civil Aviation for registration as a Regulated Agent for handling the Cargo facilities at Hyderabad International Airport and vide letter dated 24.11.2008, the assessee was granted the registration while GHIAL has granted the assessee the right to handle the Cargo facilities by virtue of the agreement. The assessee’s contention is that the assessee has been recognized also as a ‘Service Provider Right Holder’ as stipulated under the Concession Agreement itself and that further that the Government has recognized the assessee as ‘a Regulated Agent’ and therefore, the decision of the Hon’ble Madras High Court in the case of CIT, Chennai vs. AL Logistics (P) Ltd.[2015 (1) TMI 401 - MADRAS HIGH COURT] is applicable to the assessee and the assessee’s contention that since the assessee has been given approval by the Ministry of Civil Aviation, it is not necessary to enter into a specific and independent agreement with the Government for claiming deduction under section 80IA of the Act, has to be accepted. - Decided in favour of assessee
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