AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (1) TMI 401
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....and wrongly allowing deduction under Section 80IA(4) on Container Freight Station?" 2. The assessment in this case relates to the assessment year 2009-10. The assessee filed its return of income for the said assessment year on 29.9.2009 declaring its taxable income as Rs. 13,87,046/-. The case of the assessee was selected for scrutiny and notice under Section 143(2) was issued to the assessee on 25.8.2010. The assessee is owning and maintaining a Container Freight Station (CFS) at Haldia, West Bengal. In the return of income, the assessee claimed deduction under Section 80IA(4)(i) of the Income Tax Act, 1961. The Assessing Officer observed that to be eligible for claiming deduction under Section 80IA(4)(i) of the Income Tax Act, the assessee should carry on the business of developing or operating and maintaining or developing, operating and maintaining any infrastructure facility and the assessee should have entered into an agreement with the Central Government or State Government or a local authority or any statutory body for developing or operating and maintaining or developing, operating and maintaining an infrastructure facility. The Assessing Officer further viewed that the a....
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....rporation of India Ltd., Vs. ACIT reported in 346 ITR 140 (Del) that the CSF approved by the Ministry of Commerce and Industry vide letter dated 27.5.2003 and the public notice issued clearly makes the case fall under Section 80IA(4)(i) of the Income Tax Act. To come to this conclusion, the Tribunal relied on the decision of the Delhi High Court in the case of Container Corporation of India Ltd., Vs. ACIT reported in 346 ITR 140 (Del), which clearly held that an inland container deport is actually an inland port and the CFSs are part of the port. Hence, the Tribunal allowed the appeal holding that the assessee is entitled to the benefit of Section 80IA(4)(i) of the Income Tax Act. 7. Aggrieved by the order of the Tribunal, the present appeal has been filed by the Revenue raising the above-mentioned substantial questions of law. 8. Heard Mr.T.Ravikumar, learned standing counsel appearing for the Revenue and perused the materials placed before this Court. 9. We find that the Tribunal has extracted the relevant provision and the reasons to avail such benefit in paragraph 5 of the order and we extract the same as such. "5. Both sides heard. We have also perused the orders of the au....
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....e (d) of Explanation to Section 80IA(4)(i). Therefore, on fact when it has been found by the Tribunal that CSF is an infrastructure facility, we find no good reason to differ on fact. We respectfully agree with the Delhi High Court. 11. The next issue is as to whether the requirement of Section 80IA(4)(i) has been satisfied. This apparently is the key issue on which the Revenue is trying to fall back on stating that certain conditions have not been complied with and there is no agreement as required under Section 80IA(4)(i) of the Income Tax Act. To this, the assessee has submitted and the Tribunal has considered the proposal approved by the Government of India, Ministry of Commerce and Industry dated 27.5.2003, which has been extracted in paragraph 6 of the Tribunal and the public notice dated 10.11.2013 issued by the Commissioner of Customs (Port), Kolkatta permitting the CSF to operate. Once the public notice was issued and is valid as on date, it is deemed to be approval granted by the competent authority of the Central Government or an undertaking or a body of the Central Government. This principle has been enunciated by the Supreme Court in the case of Union of India v. Samp....
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.... the case of All Cargo Global Logistics Ltd., Vs. DCIT (supra). The relevant extract of the order of the Special Bench is re-produced herein below: "66. We find that the solitary decision in this case by any High Court is in the case of Container Corporation of India Ltd. In this case it has been held that an ICD is not a port but it is an inland port. The case of CFS is similar situated in the sense that both carry out similar functions, i.e., ware housing, customs clearance, and transport of goods from its location to the seaports and vice-versa by railway or by trucks in containers. Thus, the issue is no longer res-integra. Respectfully following this decision, it is held that a CFS is an inland port whose income is entitled to deduction u/s.80IA(4). Question No.2 is answered accordingly." Thus, in view of the above decisions of the Hon'ble Delhi High Court and the Special Bench of the Tribunal, it is unambiguously clear that CFS is an infrastructure facility. Hence, the first issue is decided in favour of the assessee. 7. Now, we proceed to the next issue, whether in the absence of specific agreement with the Central/State Government, local authority or Statutory Body, t....
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....ary shall be made available at the facility. The indicative list of equipment/accessories considered necessary is annexed. The status regarding confirmation of the installation/availability of the items shall be furnished to the appropriate authorities to facilitate issue of requisite notification. 3. Please acknowledge receipt of this letter. Yours faithfully, sd/- (N.G.Biswas) DIRECTOR A perusal of clause 'b' of the above letter shows that the assessee was required to execute necessary bond and guarantees with the concerned Commissioner of Customs and Central Excise. It was only on the compliance of all the terms and conditions mentioned in the aforesaid letter that the assessee was allowed to carry on the services of CFS. The assessee on the compliance of the terms and conditions as mentioned in the letter, was notified as CFS Complex for the purpose of receiving, storing, import containers, receiving/consolidating export cargo etc. vide Public Notice dt.10-11-2013. The Public Notices were issued by the office of the Commissioner of Customs (Port) Kolkatta. 8. Thus, it is evident that the proposal of the assessee was accepted by the Government on certain condition....