The assessee developed a Mechanised Coal Handling System as per...

The assessee developed a Mechanised Coal Handling System as per an agreement with KSPL, a Special Purpose Company of ISPL, which had an agreement with the Government of Andhra Pradesh. The assessee obtained a certificate from the port authority certifying that the infrastructure facility developed for coal handling is part of the Kakinada deep water port's infrastructure. Although the second condition was relaxed by the CBDT Circular, the assessee provided a letter from KSPL stating that upon expiry of the concession period, the structures constructed by KSPL or its subcontractors shall become the property of the Government of Andhra Pradesh without any obligation to reimburse. The Mechanised Coal Handling Terminal Installation of the assessee is to be taken over by the Government of Andhra Pradesh at the end of the concession period. The permission obtained from the customs authority is deemed to be the approval granted by the competent authority of the Central Government, as per the Madras High Court decision in A.L. Logistics Private Limited, affirmed by the Supreme Court in Container Corporation of India Limited. The Tribunal was justified in allowing the assessee's appeal for deduction u/s 80IA(4), as the assessee satisfied the prescribed conditions.