2019 (2) TMI 645 - AT - Income Tax

ITAT Pune Upholds Assessee's Deduction Claim under Section 80IA(4)

The Appellate Tribunal ITAT Pune upheld the eligibility of the assessee for claiming a deduction under section 80IA(4) of the Income-tax Act, dismissing ... Eligibility for claiming deduction u/s 80IA(4) denied - assessee has failed to furnish a certificate from the concerned port authorities certifying that the structure at the port for storage, loading and unloading etc. formed part of Port - Held that:- The issue raised in the present appeal is similar to the issue before the Tribunal in earlier years and following the same parity of reasoning, we hold that the assessee is entitled to claim the deduction under section 80IA(4) of the Act. Thus, the grounds of appeal raised by Revenue are dismissed. Issues:1. Eligibility for deduction under section 80IA(4) of the Income-tax Act.2. Reliance on a specific legal decision.3. Disallowance of claim by the Assessing Officer.Analysis:Issue 1: Eligibility for deduction under section 80IA(4) of the Income-tax ActThe appeal before the Appellate Tribunal ITAT Pune concerned the eligibility of the assessee for claiming a deduction under section 80IA(4) of the Income-tax Act. The Revenue challenged the order of the CIT(A)-7, Pune, which allowed the deduction claimed by the assessee amounting to Rs. 79,43,510 for the assessment year 2012-13. The Tribunal noted that the assessee, a State Government Undertaking, had set up Inland Container Depot (ICD) and Container Freight Station (CFS) for handling bonded warehouse on leasehold land. The Assessing Officer had disallowed the claim citing the absence of a certificate from the port authorities certifying that the structure at the port formed part of the Port. However, the Tribunal observed that similar claims were previously allowed by the Tribunal in the assessee's favor for assessment years 2009-10 and 2011-12. Relying on past decisions, the Tribunal held that the assessee was entitled to claim the deduction under section 80IA(4) of the Act, ultimately dismissing the grounds of appeal raised by the Revenue.Issue 2: Reliance on a specific legal decisionOne of the grounds raised by the Revenue was the alleged error by the CIT(A) in relying on the decision of Container Corporation of India Ltd. vs. ACIT (2012) 346 ITR 140 (Delhi). The Revenue contended that such reliance was misplaced. However, the Tribunal did not delve into this issue in detail in its judgment, as the crux of the matter revolved around the eligibility of the assessee for the deduction under section 80IA(4) of the Act. The Tribunal focused on the consistency of its own previous decisions regarding similar claims made by the assessee in earlier years, ultimately upholding the eligibility of the assessee for the deduction.Issue 3: Disallowance of claim by the Assessing OfficerThe Assessing Officer had disallowed the claim of the assessee under section 80IA(4) of the Act due to the absence of a specific certificate from the port authorities. However, the Tribunal, based on its previous decisions and the nature of the assessee's activities, concluded that the assessee met the criteria for claiming the deduction. The Tribunal highlighted that the issue had been settled in the assessee's favor in previous assessment years, and the current appeal merely reiterated the same issue, leading to the dismissal of the Revenue's appeal.In conclusion, the Appellate Tribunal ITAT Pune upheld the eligibility of the assessee for claiming the deduction under section 80IA(4) of the Income-tax Act, dismissing the Revenue's appeal and emphasizing the consistency of its own previous decisions in similar matters.