2014 (7) TMI 1036

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....80IA. 3. The brief facts of the case are that the assessee is a wholly owned subsidiary of Hindalco Industries Ltd. The assessee entered into an agreement dated 11.08.1999 with Gujarat Maritime Board for development, maintenance and operation of Jetty (Port) at Dahej, Gujarat. For the relevant assessment year, the assessee claimed deduction under section 80IA on account of infrastructure development of the above said port. 4. The Assessing Officer (hereinafter referred to as the AO) during the assessment proceedings observed that the assessee had claimed exempt income of Rs. 17,97,712/- from sale of water, Rs. 51,535/- from storage facility and Rs. 44,640/- as transportation charges totaling Rs. 18,93,887/-. He observed that the said inco....

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....s of 2008-09. The further details of the said Other Income is given below: BH & Port Charges :- (90,708/-) The income when non regular cargo of other nearby jetty is handeled at our jetty we charge them BH & Port charges. Misc. Income :- (Rs.3,30,760/-) The income when non regular cargo of other nearby jetty is handeled at our-jetty we charge them for using our jetty. Sale of water :- (Rs.17,97,712/-) The income received for supply of water to Cargo ships bearthing at our jetty for their engine, cleaning and other misc. purpose. Storage Facility :- (Rs.51,535/-) The Income is from Commercial cargo unloaded at our jetty and not lifted by the parties during the time allowed as per the terms of the contract. Transportation charges:- (....

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....come from sale of water is concerned, the same had been earned by the assessee for supply of water to cargo ships for their engine cleaning and other miscellaneous purposes and the same in our view was a part of the activity of operation of the jetty. Similarly, as explained by the assessee, the miscellaneous income had been earned by the assessee from the non regular cargo of other nearby jetty which had been handled at the assessee's jetty for which the assessee had charged them for use of its jetty. Hence, in our view the claim of deduction on account of income from sale of water and miscellaneous income was justified as the same was part of operation and maintenance activity of the assessee at the said jetty. So far the income on a....