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of <h1>Tribunal decides on section 80IA deductions for storage, transportation, water sale incomes</h1> <h3>M/s DAHEJ HARBOUR & INFRASTRUCTURE LTD Versus DEPUTY COMMISSIONER OF INCOME TAX</h3> M/s DAHEJ HARBOUR & INFRASTRUCTURE LTD Versus DEPUTY COMMISSIONER OF INCOME TAX - [2014] 33 ITR (Trib) 634 (ITAT [Mum]) Issues:1. Disallowance of claimed exemption under section 80IA.2. Eligibility of income from various sources for deduction under section 80IA.Analysis:1. The appellant contested the disallowance of Rs. 18,93,887 claimed as exempt under section 80IA. The Assessing Officer (AO) disallowed the deduction as the income did not relate to the business activity of providing infrastructure facility. The AO observed that only income from landing and shipping activity qualified for deduction under section 80IA. The Commissioner of Income Tax (Appeals) (CIT(A)) confirmed the disallowance based on similar grounds from a previous assessment year. The appellant argued that the income was directly linked to the infrastructure facility operation. The Tribunal noted that income from sale of water and miscellaneous sources was justified as part of the operation and maintenance activity at the jetty. However, income from storage facility and transportation charges was deemed ineligible for deduction under section 80IA.2. Regarding the income sources, the Tribunal found that income from sale of water and miscellaneous sources was integral to the operation of the jetty, justifying the claim for deduction under section 80IA. However, income from storage facility was not considered part of the infrastructure facility developed by the appellant, leading to the disallowance of deduction. Similarly, transportation charges were deemed unrelated to the infrastructure facility development at the jetty, resulting in their disallowance. The Tribunal partially allowed the appeal, permitting deduction for income from sale of water and miscellaneous sources but disallowing it for storage facility and transportation charges.In conclusion, the Tribunal upheld the disallowance of claimed exemption under section 80IA for income from storage facility and transportation charges while allowing it for income from sale of water and miscellaneous sources. The judgment provided a detailed analysis of each income source's eligibility for deduction under section 80IA, emphasizing the direct connection between the income and the operation of the infrastructure facility at the jetty.
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