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2023 (5) TMI 111 - AT - Income TaxDeduction u/s 80IA(4) - non fulfillment of prescribed conditions by the assessee to claim deduction u/s 80IA(4) which is a profit-linked incentive - certificate from concerned Authority that the infrastructural facility forms part of the Port - HELD THAT:- The assessee (BSSPL) and KSPL entered into an agreement for the establishment of “'8 MMTPA Mechanised Coal Handling System for Unloading and Rail Despatch in Kakinada Deep Water Port at Berth No. 5 and its backup area”. KSPL is acting as a nodal agency under the primary agreement between GoAP and ISPL. In this respect, the argument canvassed by the Revenue that the agreement is between assessee and KSPL does not satisfy the condition prescribed in sub-clause (b) of section 80IA(4)(i) is too rigid interpretation and frustrates both, the purpose of creating such nodal agencies and the legislative intent of granting deduction to the assessee engaged in infrastructure development projects. Similar view was taken in the case of DCIT vs. Belair Logistics [2015 (5) TMI 387 - ITAT HYDERABAD] wherein the assessee had entered in an agreement with Kakinada Seaport Ltd. ie the same company with whom assessee had an agreement and the deduction claimed under section 80IA(4) was allowed on the basis of port certificate issued to it. Assessee had obtained the permission from Custom Authorities for construction and operation of Mechanised Coal Handling System for which the Commissioner of Central Excise, Customs and Service Tax, Visakhapatnam - II Commissionerate, Visakhapatnam has accorded the permission vide letter dated 01.02.2013. The said permission is deemed to be an approval granted by the competent authority of the Central Government. Documents placed on record, position of law and CBDT circulars, submissions made by both the parties and judicial precedents, as discussed above, we are of considered view to allow the claim of deduction made by the assessee under section 80IA(4) of the Act. Accordingly, ground nos. 01 to 09 taken by the assessee in this respect are allowed.
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