2022 (9) TMI 693 - AT - Income Tax

Tribunal affirms deduction under section 80IA(4) for Container Freight Station

Dy. Commissioner of Income Tax, Panvel Circle, Panvel Versus M/s. Continental Warehousing Corporation (Nhava Sheva) Ltd.

Dy. Commissioner of Income Tax, Panvel Circle, Panvel Versus M/s. Continental Warehousing Corporation (Nhava Sheva) Ltd. - TMI Issues:Whether the CIT(A) was justified in allowing deduction u/s. 80IA(4) of the Act in respect of Container Freight Station (CFS).Analysis:The appeal by the Revenue was against the order passed by the Commissioner of Income Tax (Appeals)-2, Pune for assessment year 2014-15. The main issue to be decided was whether the CIT(A) was correct in allowing the deduction u/s. 80IA(4) of the Act in relation to a Container Freight Station (CFS). The Tribunal noted that a similar issue had been decided in favor of the assessee by the Hon'ble Supreme Court in a batch of appeals. The Tribunal had previously decided in favor of the assessee for A.Y. 2013-14, holding that the assessee was entitled to claim deduction u/s. 80IA(4) of the Act for the Container Freight Station based on the decision of the Hon'ble Supreme Court. The arguments put forth by both sides were considered, with the Revenue contending that the activities did not fall within the definition of ‘Infrastructure facilities' under section 80IA(4) of the Act. However, the Tribunal upheld the decision of the CIT(A) based on the previous rulings and dismissed the grounds raised by the Revenue.The Tribunal referred to previous judgments, including decisions by the Hon'ble High Court of Bombay and the Hon'ble Supreme Court, which supported the assessee's claim for deduction u/s. 80IA(4) of the Act for the Container Freight Station. The Revenue argued against this claim, citing instructions from the CBDT that Inland Container Depots (ICDs) and Container Freight Stations (CFS) were not considered Ports for the purpose of section 80IA(4)(i) of the Act. However, the Tribunal found that the decisions of the higher courts and previous Tribunal rulings favored the assessee's position. The Tribunal reiterated that the Hon'ble Supreme Court had already settled the issue in favor of the assessee, and therefore, upheld the CIT(A)'s order allowing the deduction.In conclusion, the Tribunal held that the assessee was entitled to claim the deduction u/s. 80IA(4) of the Act for the Container Freight Station, and accordingly, dismissed the appeal of the Revenue. The decision was based on the previous rulings of higher courts and the Tribunal, which supported the assessee's eligibility for the deduction. The order was pronounced in the open court on 21st July, 2022.