2010 (2) TMI 108 - BOMBAY HIGH COURT

Deduction under section 80IA – Infrastructure facility – The assessee, in terms of the policy of the Gov. of India to encourage private sector participation in the development of infrastructure, bid for and was awarded a contract for leasing of container handling cranes at the Jawaharlal Nehru Port Trust (JNPT). The assessee claimed special deduction under section 80IA. The assessing officer rejected the claim but the commissioner (Appeals) Tribunal allowed it. Held that – JNPT issued a certificate confirming the award of contracts to the assessee for supply, installation, testing, commissioning, and maintenance of container handling equipment on lease for a period of ten years for loading and unloading of containers at the port and that the cranes that were to be supplied by the assessee formed an integral part of the port. The condition of a certificate from the port authority was fulfilled and JNPT certified that the facility provided by the assessee was an integral part of the port. The findings that the assessee had developed the infrastructure facility and that it was engaged in operating the cranes was, therefore, based on the material on record. The fact that the assessee was also maintaining the cranes was not disputed. The assessee was entitled to the special deduction under section 80IA.