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2015 (7) TMI 1099 - MADRAS HIGH COURT

2015 (7) TMI 1099 - MADRAS HIGH COURT - [2016] 383 ITR 630 - Eligibility of Container Freight Station as infrastructure facility for the purpose of deduction under section 80-IA(4) - Held that:- In view of the status of CFS having been clarified by the Ministry of Commerce and Industry as "inland ports" and the Chennai Port Trust has issued a certificate stating that the CFS of the assessee may be considered as extended arm of the Port in accordance with the Central Board of Direct Taxes Circula .....

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Revenue as against the order of the Income-tax Appellate Tribunal raising the following substantial questions of law : "1. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in not considering the amended provisions of section 80-IA(4), with effect from April 1, 2002, Container Freight Station is not an eligible infrastructure facility for the purpose of deduction under section 80-IA(4) ? 2. Whether under the facts and circumstances of the case, the .....

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the assessment year in question, the assessee filed its return of income admitting a sum of ₹ 7.97 lakhs after claiming deduction under section 80-IA on the Container Freight Station. The case of the assessee was selected for scrutiny and the Assessing Officer disallowed the claim of deduction under section 80-IA of the Income-tax Act holding that CFS could not be classified as "inland ports" for the purpose of claiming deduction under section 80-IA(4)(i) of the Income-tax Act. T .....

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ITD 287 (Mum) allowed the appeal holding that the assessee's container freight station is an inland port for the purpose of Explanation to section 80-IA(4)(i) of the Income-tax Act. The Commissioner of Income-tax (Appeals) further held that he subsequent to the amendment, the "inland ports" are brought into the statutes as infrastructure facility for the purpose of section 80- IA(4)(i) of the Income-tax Act. The Commissioner of Income-tax (Appeals) also noted that the Ministry of C .....

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Tribunal after hearing both sides, dismissed the appeal holding as follows : "After hearing both the sides and carefully perusing the materials on record, we find the facts of the case is identical to that of the case decided by the Tribunal's Special Bench. In the case of the assessee, Chennai Port Trust has issued a certificate dated June 2, 2010 stating that the Container Freight Station owned by the assessee at No. 43 Kadapakkam Village, Vichur High Road, Manali New Town Chennai 10 .....

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s forming part of the Port certified by the concerned Port Authorities. The learned Commissioner of Income-tax (Appeals) after examining the issue in detail had allowed the case of the assessee in its favour following the decision of the Tribunal's Special Bench cited supra. The decisions relied by the assessee men tioned hereinbelow also support the case of the assessee, viz. ; (i) Special Bench in the case of All Cargo Global Logistics Ltd. v. Deputy CIT [2012] 18 ITR (Trib) 106 (Mumbai) [ .....

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ated June, 28, 2013. Therefore, we do not have any hesitation to confirm the order of the learned Commissioner of Income-tax (Appeals). It is ordered accordingly." 5. Aggrieved by the order of the Tribunal, the present appeal has been filed by the Revenue raising the abovementioned substantial questions of law. 6. Heard Mr. T. R. Senthil Kumar, learned standing counsel appearing for the Revenue and perused the materials placed before this court. 7. It is seen that the issue involved in this .....

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ing that the container freight station is held to be falling within the customs area attached to the port, held as follows : "As has been observed by the Tribunal, in the decision of the Delhi High Court in the case of Container Corporation of India Ltd. v. Asst. CIT reported in [2012] 346 ITR 140 (Delhi), container freight station is held to be falling within the customs area attached to the port. As the work relating to customs is performed at these inland container depots/container freig .....

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o section 80-IA(4)(i). Therefore, on fact when it has been found by the Tribunal that CFS is an infrastructure facility, we have no hesitation to give a different conclusion on fact." 8. In the present case, as rightly pointed out by the Commissioner of Income-tax (Appeals), which was confirmed by the Tribunal, the Office Memorandum of the Ministry of Commerce and Industry dated May 21, 2009 clarified the status of the CFS as inland ports. For better clarity, the Office Memorandum dated May .....

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