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TMI Blog2018 (5) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... OF 2018, CIVIL APPEAL No. 10662 of 2016, CIVIL APPEAL No. 11709 of 2016CIVIL APPEAL No. 1441 of 2017, CIVIL APPEAL No. 4458 of 2017, CIVIL APPEAL NOs. 4493-4494 OF 2018, CIVIL APPEAL No. 4459 of 2017, CIVIL APPEAL No. 5571 of 2017, CIVIL APPEAL No. 5573 of 2017, CIVIL APPEAL No. 6800 of 2017, CIVIL APPEAL No. 11075 of 2017, CIVIL APPEAL NO. 4499 OF 2018, CIVIL APPEAL No. 9364 of 2017, CIVIL APPEAL No. 9487 of 2017, CIVIL APPEAL No. 9277 of 2017, CIVIL APPEAL No. 10236 of 2017CIVIL APPEAL No. 14900 of 2017, CIVIL APPEAL No. 16162 of 2017, CIVIL APPEAL No. 11202 of 2017, CIVIL APPEAL NO. 4548 OF 2018CIVIL APPEAL No. 15028 of 2017, CIVIL APPEAL No. 11117 of 2017, CIVIL APPEAL No. 15033 of 2017, CIVIL APPEAL No. 11160 of 2017, CIVIL APPEAL NO. 4547 OF 2018CIVIL APPEAL No. 15494 of 2017, CIVIL APPEAL No. 15497 of 2017, CIVIL APPEAL No. 17315 of 2017CIVIL APPEAL No. 17534 of 2017, CIVIL APPEAL No. 17317 of 2017, CIVIL APPEAL No. 17318 of 2017, CIVIL APPEAL No. 18272 of 2017, CIVIL APPEAL No. 17986 of 2017, CIVIL APPEAL No. 18011 of 2017, CIVIL APPEAL No. 19491 of 2017CIVIL APPEAL No. 19535 of 2017, CIVIL APPEAL No. 19935 of 2017, CIVIL APPEAL NO. 4645 OF 2018CIVIL APPEAL No. 20850 OF 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction on the profits earned from the ICDs and further the deduction on account of rolling stocks has been rejected by the Assessing Officer vide Assessment Order dated 28.02.2006. (c) The respondent herein, being aggrieved with the aforesaid order, filed an appeal being No. 325/05-06 to the Commissioner of Income Tax (Appeals)-VI, New Delhi. Learned CIT (Appeals), vide order dated 29.05.2007, partly allowed the appeal while rejecting the deduction claimed under Section 80-IA of the IT Act. Being aggrieved, the respondent herein further preferred ITA Nos. 2851 & 3680/DEL./2007, 2753 & 4477/DEL/2007 before the Tribunal. The Tribunal, vide order dated 27.02.2009, partly allowed the appeal and held that the deduction under Section 80-IA can be claimed with regard to the rolling stocks of the company but not with regard to the ICDs. (d) Being aggrieved by the order dated 27.02.2009, the respondent herein challenged the same before the High Court by filing three Income Tax Appeals being Nos. 967 of 2011, 1411 of 2009 and 968 of 2011. The Division Bench of the High Court, vide judgment and order dated 11.05.2012, allowed the appeals and held that the Respondent herein is entitled t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the relevant Section as it stood at the time when the notification was issued, the Respondent was eligible for deduction for a period of 10 successive assessment years which covers the Assessment Years 2003-04 to 2005-06 which are the years under appeal. Learned senior counsel finally contended that the judgment and order passed by the High Court does not call for any interference. Discussion: 10) As the whole point in dispute revolves around the ICDs, it would be appropriate to have an understanding about the same. The ICDs function for the benefit of exporters and importers located in industrial centers which are situated at distance from sea ports. The purpose of introducing them was to promote the export and import in the country as these depots acts as a facilitator and reduce inconvenience to the person who wishes to export or import but place of his business is situated in a land locked area i.e., away from the sea. These depots reduce the inconvenience in import and export in the sense that it reduces the bottlenecks that are arising out of handling and customs formalities that are required to be done at the sea ports by allowing the same to be done at these depots ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses which can avail the benefit of Section 80-IA of the IT Act, which do not fall within any of the specified categories but carries out activities of similar nature. 14) Further, Central Board of Direct Taxes (CBDT), in exercise of its power under Section 80-IA(12)(ca), vide Notification No.S.O.744(E) dated 01.09.1998 notified ICDs and CFSs as infrastructure facility. 15) In addition to the above, the Finance Act, 1998, which came into effect on 01.04.1999, made a change in the definition of 'Infrastructure facility' as is relevant to the present case. The words 'Inland water ways and inland ports' were added in the definition of infrastructure facility. Now, the definition reads as under: "Infrastructure Facility means road, bridge, airport, port, inland waterways and inland ports, rail system by any other public facility of similar nature as may be notified by the Board in this behalf in official Gazette." 16) A noticeable change was further brought by the Finance Act, 2001, which came into effect from 01.04.2002, in the terms that the power of the Board to extend the benefit of the said provisions to any infrastructure facility of similar nature by issuing a Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification which was issued by the CBDT came into effect on 01.09.1998 i.e., the time when the term 'Inland Port' was not in itself inserted in the provisions of Explanation attached to Section 80-IA(4) of the IT Act defining the term 'infrastructure facility'. It was inserted through Finance Act, 1998 which came into effect from 01.04.1999. So there seems to be no conflict within the Notification issued by the Board and the fact that the ICDs are Inland Ports or not. 20) Moreover, we find that the Respondent has been held entitled for the benefit of Section 80IA of the IT Act much before the Finance Act, 2001 which came into force on 01.04.2002 and exemption for the period of 10 years cannot be curtailed or denied by any subsequent amendment regarding the eligibility conditions under the period is modified or specific provision is made that the benefit from 01.04.2002 onwards shall only be claimed by the existing eligible units if they fulfill the new conditions. 21) Moving further to the issue whether the ICDs can be termed as Inland Ports so as to entitle deduction under Section 80-IA of the IT Act. The term port, in commercial terms, is a place where vessels are in a habit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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