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2018 (9) TMI 142 - AT - Income TaxDisallowance u/s 80IA on ICDs/CFS, which are inland ports - Held that:- COMMISSIONER OF INCOME TAX, DELHI-1 VERSUS M/S CONTAINER CORPORATION OF INDIA LTD. [2018 (5) TMI 359 - SUPREME COURT OF INDIA] 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- 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 Notification and communication are not binding on CBDT to decide whether ICDs can be termed as Inland Ports within the meaning of Section 80-IA the appellant herein is unable to put forward any reasonable explanation as to why these notifications and communication should not be relied to hold ICDs as Inland Ports. Unless shown otherwise, it cannot be held 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 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. Disallowance of depreciation on intangible assets being license acquired from Indian Railway for running container trains on Indian Railways - Held that:- This Tribunal for A.Y. 2008-09 in assessee’s own case held that, commercial right acquired by assessee by way of this license for earning enduring benefit for a period of 20 years would amount to capital asset. It is also observed that this view of Tribunal derives support from decision of Hon’ble Delhi High Court in the case of Areva T&D India Ltd. vs. DCIT [2012 (4) TMI 79 - DELHI HIGH COURT]. We hold intangible asset acquired by assessee is eligible for depreciation @ 25% u/s 32(1)(ii) of the Act. Disallowance of deduction on account of lease rent paid in advance against the land taken on long - term lease for business purposes on pro rata basis - Held that:- As there is no change in the factual circumstances, respectfully following the aforestated view taken by this Tribunal in assessee’s own case for Assessment Year 2008-09 and 2009-10, we set aside this issue to the file of Ld. AO with the direction to assessee to furnish all requisite details in respect of the claim of depreciation. Ld. AO shall then verify the details to determine whether the claim of assessee is allowable or not as per law. Disallowance computed under section 14A read with Rule 8D - Held that:- We are inclined to set aside this issue to Ld. AO for recomputing the disallowance having regard to the ratio laid down by Hon’ble Supreme Court in case of Maxopp investments Ltd vs. CIT [2018 (3) TMI 805 - SUPREME COURT OF INDIA]. Accordingly this ground raised by assessee stands allowed for statistical purposes. Depreciation granted on assets retired from active use - Held that:- Recompute depreciation after reducing the scrap value of the assets which have been discarded and written off in the books of account for the year under consideration from the written down value of the block of assets. Actual user of the machinery is not required with respect to discarded machinery and the condition for eligibility for depreciation that the machinery being used for the purpose of the business would mean that the discarded machinery is used for the purpose of the business in the earlier years for which depreciation has been allowed.
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