2020 (3) TMI 677 - AT - Income Tax

Tribunal upholds deductions for Assessment Years 2010-2014 under section 80IA(4)

The Tribunal dismissed all appeals filed by the revenue for the Assessment Years 2010-11 to 2013-14, upholding deductions allowed by the Commissioner of ... Deduction u/s. 80IA(4) - FDR interest, scrap sales and EDI charges - whether these incomes cannot be said to be derived from the business activity of the assessee of running a Container Freight Station.' - HELD THAT:- We find that the issues ( reg: claim of deduction u/s. 80IA (4) of the Act] on a/c of FDR/EDI/scrap sales and profit earned from the operation of an inland container depot (ICD) involved in the present appeal are in favour of assessee and against the revenue, which has been affirmed by decision of the Hon’ble Bombay High Court in assessee’s case [2018 (4) TMI 749 - BOMBAY HIGH COURT]. The facts in AY 2010-11 are identical and similar to the facts in earlier assessment years ( AY 2008-09) as dealt with by this tribunal. We further find that the AO has ought to have followed the said decision of the Hon’ble Bombay High Court in assessee’s own case. The AO made additions only on the reason that the matter is still pending in Hon’ble High Court, ignoring the fact that the Hon’ble High Court had already decided the issues in AY 2008-09 in favour of assessee. Issues involved:1. Claim of deduction under section 80IA(4) of the Income Tax Act for various incomes.2. Interpretation of infrastructure facility and eligibility for deduction under section 80IA(4).3. Compliance with conditions for availing deduction under section 80IA(4).4. Application of previous judgments and decisions in similar cases.Detailed Analysis:1. The Appellate Tribunal ITAT Mumbai addressed the issue of the claim of deduction under section 80IA(4) of the Income Tax Act for various incomes in four appeals filed by the revenue against separate orders of the Commissioner of Income Tax (Appeals) for the Assessment Years 2010-11 to 2013-14. The appeals were clubbed together due to identical issues. The first appeal, ITA No. 576/Mum/2018 for AY 2010-11, focused on allowing deductions for FDR interest, scrap sales, EDI charges, and profits from operating an Inland Container Depot (ICD).2. The Tribunal analyzed the interpretation of an infrastructure facility and the eligibility for deduction under section 80IA(4) concerning the operation of an Inland Container Depot (ICD). The revenue contended that the deductions claimed were not derived from the business activity of running a Container Freight Station. The Tribunal considered the conditions required to avail such deductions and examined the documents and explanations provided by the assessee regarding their business activities.3. The issue of compliance with conditions for availing deductions under section 80IA(4) was crucial in determining the eligibility of the assessee for the claimed deductions. The Assessing Officer (AO) disallowed the deductions as the conditions for availing the benefit of deduction were not fulfilled by the assessee. However, the Commissioner of Income Tax (Appeals) allowed the deductions based on detailed submissions and previous judgments, including decisions of the Hon'ble Bombay High Court.4. The Tribunal extensively discussed the application of previous judgments and decisions in similar cases involving deductions under section 80IA(4). It referenced a Co-ordinate Bench decision in the assessee's own case for AYs 2008-09 and 2009-10, where the Hon'ble Bombay High Court had upheld the deductions for similar issues. The Tribunal upheld the order of the Commissioner of Income Tax (Appeals) based on the precedent set by the High Court, concluding that the issues in the present appeals were in favor of the assessee and against the revenue.In conclusion, the Tribunal dismissed all the appeals filed by the revenue for the Assessment Years 2010-11 to 2013-14, upholding the deductions allowed by the Commissioner of Income Tax (Appeals) based on the interpretation of the Income Tax Act and previous judicial decisions.