TMI Blog2022 (10) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has made suo moto disallowance on the dividend income - AO has made the disallowance on expenditure at 0.5% with the specific disallowance that total interest expenditure incurred by the assessee And assessee has not disallowed interest and expenses as provided under Rule 8D as prescribed under Section 14A - HELD THAT:- There was a clear satisfaction that assessee has not made any disallowance on expenditure. Thus, the CIT(A) was not correct in holding that no satisfaction was recorded by the AO. But the contention of the assessee that the AO should have taken only those shares of Mutual Fund and equity shares which resulted in earning tax from dividend income appears to be just and proper and the working of disallowance under Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the addition made by the AO amounting to Rs.64,43,00,313/- on account of disallowance of the claim for deduction u/s 80IA of the Act. 2. The Ld. CIT(A) erred on facts and in law in holding that the assessee was eligible for deduction u/s 80IA of the Act. 3. The Ld. CIT(A) erred on facts and in law in deleting the addition made by the AO amounting to Rs.76,80,274/- on account of disallowance u/s 14A. 4. Ld. CIT(A) erred on facts and in law in holding that while resorting to provisions of section 14A of the Act and computing disallowable amount under Rule 8D, recording the satisfaction by the AO that the working of disallowable made by the assessee was incorrect is mandatory and in absence of such satisfaction, no disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the CIT(A). The CIT(A) allowed the appeal of the assessee. 5. The Ld. D.R. submitted that the CIT(A) was not right in deleting the addition made by the AO amounting to Rs. 64,43,00,313/- on account of disallowance of claim for deduction under Section 80IA of the Act as the assessee is claiming the deduction without fulfilling the conditions set out under Section 80IA(4) of the Act. The Ld. D.R. submitted that the enterprise which claims the deduction should carry on the business of developing or operating or maintain or developing, operating and maintaining any infrastructure facility. As per Clause (d) of the Explanation to Section 80IA(4), infrastructure facility means a port, airport, inland waterway. The CBDT Circular No. 10 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the CIT(A) was not correct in allowing the said income. The Ld. D.R. relied upon assessment order. 9. The Ld. A.R. submitted that regarding Ground No. 1 2 of Revenue s appeal the Hon ble Supreme Court in assessee s own case in Civil Appeal No. 4484 of 2018 has given a clear finding that assessee is eligible for claiming deduction under Section 80IA for operating and maintaining CFS facility. The Ld. A.R. further submitted that the assessment order contested by the assessee is that of 2013-14 and JNPT authority has clearly granted the certificate to the assessee in the year 2007 thereby withdrawing the earlier remarks. The Ld. A.R. further submitted that in respect of disallowance under Section 14A has not given any satisfac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Investments Ltd. (2015) 56 taxmann.com 456 wherein it is held that the income from letting out property should be treated as business income in specific circumstances which are set out in the said decision. 10. We have heard both the parties and perused all the relevant material available on record. As regards Ground No. 1 2 related to deduction under Section 80IA (4) the assessee s case is squarely covered by the Hon ble Supreme Court decision in assessee s own case in Civil Appeal 4484 of 2018 wherein the assessee has been allowed to claim deduction under Section 80IA as the assessee is developing, operating and maintaining infrastructure facilities in the port area and is Container Freight Station which comes within the definiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess SHEC under Section 40 of the Income Tax Act is squarely covered by the decision of Hon ble Bombay High Court in case of Sesa Goa Ltd. (Supra). Thus Ground No. 5 is dismissed. 13. As regards Ground No. 6, the CIT(A) has given a detail finding and it is the requirement of the business that the separate block for user agencies quipped with basic facilities and for accommodation for bank are mandatory for the assessee as per the Ministry of Commerce guidelines. Thus, claiming deduction under Section 80IA on the rental income is just and proper. There is no need to interfere with the finding of the CIT(A) Ground No. 6 is dismissed. 14. In the result, appeal of the Revenue is partly allowed. This Order pronounced in Open Court on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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