Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 123 - HC - Income TaxRevision u/s 263 by CIT - whether the assessee was entitled to the benefit of deduction u/s 80- IA(4)? - revenue seeks to sustain the order passed by the PCIT under Section 263 of the Act by contending that the two companies which were permitted to use the railway sidings were group companies of the assessee and they were closely held companies by the assessee and, therefore, cannot be construed to be used by general public - HELD THAT:- Contention of the revenue has to be outrightly rejected and such narrow interpretation of the agreement entered into between the assessee and Indian Railways cannot be given. Tribunal rightly referred to the various clauses in the agreement and came to the conclusion that the Railway Administration had a right to use all the sidings which have been put up by the assessee. Thus, the assessee would squarely fall within the ambit of clause (b) of Section 80-IA(4) of the Act. Further, we note Tribunal has relied on the decision in the case of Tamilnadu Petro Products [2010 (11) TMI 645 - MADRAS HIGH COURT] wherein as took note of the decision in the case of CIT Vs. Tanfac Industries Ltd. [2009 (7) TMI 1260 - SUPREME COURT] wherein while applying Section 80-IA(4) of the Act, The Hon’ble Supreme Court took a view that the value of steam used for captive consumption by the assessee was entitled to be deducted under Section 80-IA of the Act. In Tamilnadu Petro Products [2010 (11) TMI 645 - MADRAS HIGH COURT]the revenue contended that the expression “derived from” should be given restricted meaning in which event the claim of the assessee cannot be countenanced. This argument by the revenue was rejected by holding that Section 80-IA (4) provides for the benefit even in respect of electricity generation plant established by the assessee and income derived from such enterprise of the assessee and it was held that the assessee has fully complied with the requirement prescribed under Section 80IA in order to avail the benefit provided therein. The above decision will squarely apply to the facts of the case on hand. Furthermore, the Tribunal also relied upon the decision of the ITAT Mumbai Bench in the case of JSW STEEL VS. PCIT [2017 (12) TMI 1204 - ITAT MUMBAI] wherein identical facts were involved and thus we are of the clear view that the Tribunal rightly allowed the appeal filed by the assessee.
|