Deduction under section 80IA(4) upheld where the airport entity was treated as performing statutory and public functions.

The Tribunal considered whether deduction under section 80IA(4) was available in relation to Bangalore International Airport Ltd.'s status as a statutory body. It followed the jurisdictional High Court's binding view that the entity, on the basis of its constitution, shareholding, agreements and functions, performs statutory and public functions and is amenable to writ jurisdiction. As the High Court had already decided the same core issue against the Revenue's position, the Tribunal declined to take a contrary view and upheld the first appellate authority's order. The deduction was therefore allowed and the Revenue's challenge failed.

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Issues: (i) Whether the assessee was entitled to deduction under section 80IA(4) of the Income-tax Act, 1961 in view of the status of Bangalore International Airport Ltd. as a statutory body.

Analysis: The Tribunal noted that the very issue earlier decided against the Revenue had been reconsidered in the light of the jurisdictional High Court judgment. The High Court had examined the constitution, shareholding, agreements and functions of Bangalore International Airport Ltd. and held that it was discharging statutory and public functions and was amenable to writ jurisdiction. Since the jurisdictional High Court had already taken a contrary view on the same core issue, the Tribunal followed that binding decision and held that there was no reason to interfere with the order of the first appellate authority.

Conclusion: The issue was decided in favour of the assessee, and the Revenue's challenge to the deduction failed.

Ratio Decidendi: Where the jurisdictional High Court has held that the entity concerned performs statutory and public functions, the Tribunal must follow that binding declaration and cannot sustain a contrary view on the same issue.

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