TMI Blog2023 (8) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... arges nevertheless pertain to the storage, loading and unloading activities which comes under the preview of the eligibility to claim deduction u/s. 80IA. We would also like to place our reliance on the decision of M/s. ABG Heavy Industries Ltd [ 2010 (2) TMI 108 - BOMBAY HIGH COURT] wherein it was held that in case of deduction claimed u/s. 80IA, the intention of the legislature was to promote growth and development of infrastructure which has to be construed liberally. In the present case in hand, the assessee itself has developed port at Alibaug and was directly engaged in the business of infrastructure development. We find no justification in denying the claim of the assessee and, hence, we find no reason to deviate from the finding of the ld. CIT(A). Decided against revenue. - Shri Prashant Maharishi, AM And Ms. Kavitha Rajagopal, JM For the Assessee : Ms. Neha Patel For the Revenue : Shri H. M. Bhatt ORDER PER KAVITHA RAJAGOPAL, J M: This appeal has been filed by the Revenue, challenging the order of the learned Commissioner of Income Tax (Appeals) ( ld.CIT(A) for short), National Faceless Appeal Centre ( NFAC for short) u/s.250 of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee as deduction u/s. 80IA(4) of I. T. Act has escaped the assessment for the relevant year. 4. The A.O. passed the assessment order dated 27.12.2017 u/s. 143(3) r.w.s. 147 of the Act by determining the total income at Rs. 6,53,22,663/- and book profit u/s. 115JB of the Act at Rs. 6,25,30,870/- where the A.O. disallowed the port rent charges of Rs. 4,81,11,547/- on the ground that it does not have a direct and first degree nexus with the business activity of running and maintaining of the port. 5. The assessee was in appeal before the first appellate authority, challenging the reassessment proceeding and the disallowance /addition made by the A.O. The ld. CIT(A) deleted the impugned addition made on account of disallowance of port charges of Rs. 4,81,11,547/- claimed u/s. 80IA of the Act by relying on the assessment of the assessee where the A.O. has allowed the said deduction for previous nine years. The ld. CIT(A) also relied on the decision of Hon'ble Bombay High Court in the case of Madhukar C Ashar vs. Union of India [2016] 69 taxmann.com 221 (Bom) wherein the principle of consistency has to be followed in case of no change in circumstances. 6. Aggrieved the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t) in scheduled A and schedule B area and that the assessee has been certified by the Port Officer and Conservator, Resister Mora Group of Ports, Thane that the assessee has developed new port infrastructure facility consisting of landing points as well as developed plant, compound wall and roadway bridges, office structures forming part of the port. The assessee further to this has stated that the audit objection specifying that the port rent charges for providing parking or other ancillary support services are for smooth functioning of the ports, is not justifiable as the said charges was in relation to the import/export of goods stored on the notified port area which form part of the port services. The A.O. rejected the contention of the assessee and distinguished the receipts specified in schedule K of the audited accounts relating to Jetty usage charges, port service charges and wharfage to be directly related to the activity of running and maintaining the ports and the port rental charges to be an ancillary activity, thereby allowing 10% of expenses on estimated basis incurred for such activity. The A.O. relied on the proposition laid down by the Hon'ble Apex Court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a company registered in India or by a consortium of such companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act; (b) it has entered into an agreement with the Central Government or a State Government or a local authority or any other statutory body for (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining a new infrastructure facility; (c) it has started or starts operating and maintaining the infrastructure facility on or after the 1st day of April, 1995: Provided that where an infrastructure facility is transferred on or after the 1st day of April, 1999 by an enterprise which developed such infrastructure facility (hereafter referred to in this section as the transferor enterprise) to another enterprise (hereafter in this section referred to as the transferee enterprise) for the purpose of operating and maintaining the infrastructure facility on its behalf in accordance with the agreement with the Central Government, State Government, local authority or statutory body, the provisions of this section shall apply to the transferee enterprise as ..... 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