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2016 (1) TMI 40 - ITAT CHENNAI

2016 (1) TMI 40 - ITAT CHENNAI - TMI - Deduction under Section 80-IA - Held that:- In view of the mandatory requirement under Section 80-IA(4)(i)(b) of the Act, the assessee has to necessarily enter into an agreement either with Central Government or State Government or with local authority or any other statutory body for developing Container Freight Station.

As found by the Tribunal in the case of A.L. Logistics Pvt. Ltd. (2015 (1) TMI 401 - MADRAS HIGH COURT) even though no specific .....

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rities are set aside and issue of deduction under Section 80-IA of the Act is remitted back to the file of the Assessing Officer. The Assessing Officer shall re-examine the issue and find out whether the assessee has obtained any approval or entered into any agreement with Government or Government agency, as in the case of A.L. Logistics Pvt. Ltd. (supra) and thereafter decide the same in accordance with law, after giving reasonable opportunity to the assessee. - Decided in favour of revenue for .....

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e arises for consideration in all the appeals, we heard the appeals together and disposing of the same by this common order. 2. Sh. P. Radhakrishnan, the Ld. Departmental Representative, submitted that the assessee is engaged itself in the business of clearing and forwarding agency in the sea port. The assessee is also owning and operating a Container Freight Station. The assessee claimed deduction under Section 80-IA of the Income-tax Act, 1961 (in short 'the Act') from operating Contai .....

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claim of the assessee under Section 80-IA of the Act. However, the CIT(Appeals) found that the Container Freight Station set up by the assessee can be construed as port or inland port and therefore, eligible for the benefit of deduction under Section 80-IA of the Act. The CIT(Appeals) has placed his reliance on the decision of this Tribunal in assessee's own case for assessment years 2008-09 and 2009-10 in I.T.A. Nos.1032 & 1033/Mds/2013. 3. On the contrary, Sh. A.S. Sriraman, the Ld.co .....

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g to an unreported judgment of Madras High Court, a copy of which is filed by the assessee, in CIT v. M/s A.L. Logistics Pvt. Ltd. in Tax Case (Appeal) No.1031 of 2014 dated 23.12.2014, the Ld.counsel submitted that on identical set of facts, the Madras High Court found that Container Freight Station is a port or inland port. In the absence of a specific exclusion of Container Freight Station in clause (d) of Explanation to Section 80- IA (4)(i) of the Act, the Madras High Court found that Conta .....

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80-IA of the Act, more particularly, sub-section (4) of Section 80-IA of the Act. Sub-section (4) of Section 80-IA of the Act clearly says that an enterprise carrying on the business of developing or operating and maintaining any infrastructure facility which fulfills all the conditions prescribed in sub-section (4) of Section 80-IA of the Act, is eligible for the benefit of deduction. Explanation to Section 80-IA(4) of the Act clarifies the infrastructure facility. Explanation (d) to Section 80 .....

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. By referring to a communication said to be issued by Department of Revenue, Central Board of Excise and Customs, Ministry of Finance, it was found that the work related to Customs is performed at these inland container depots. Ultimately, by placing reliance on the decision of Special Bench of this Tribunal in All Cargo Global Logistics Ltd. v. DCIT (2012) 137 ITD 287 and the judgment of the Delhi High Court in Container Corporation of India Ltd. v. ACIT (2012) 346 ITR 140 , the Madras High Co .....

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sessee and Government or any local authority for establishing the infrastructure facility. 6. We have carefully gone through the provisions of Section 80- IA of the Act. Section 80-IA(4)(i)(b) clearly says that Section 80-IA of the Act applies to an enterprise, which has entered into an agreement with Central Government or a State Government or a local authority or any other statutory body for developing or operating and maintaining or developing, operating and maintaining a new infrastructure f .....

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Department of Commerce approved the proposal of the assessee for setting up of Container Freight Station at Haldia. Accordingly, the High Court found that the assessee is eligible for deduction under Section 80-IA of the Act. In the case before us, even though the Assessing Officer specifically claimed that the assessee has not entered into any agreement either with State Government or any other authority or local body, the CIT(Appeals) has not examined this contention of the Assessing Officer. .....

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