TaxTMI 
TaxTMI 
TaxTMI 
2012 (8) TMI 893
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....derations while ignoring the material considerations. 1.3 It is submitted that in the facts and the circumstances of the case, and in law, no such disallowance was called for." 2. The only issue raised in the present appeal is regarding denial of benefit of deduction under section 80 IA(4) of the Income Tax Act,1961(the Act). The assessee company had claimed deduction under section 80IA(4) of the Act by filing audit Report in Form 10 CCB as per Rule 18 BBB of IT rules, 1962. It was claimed that assessee is a "Port", therefore, entitled to get deduction under section 80 IA (4) of the Act. It was mentioned in the report as under:- 1. Continental Warehousing Corporation (Nhaua Sheva) Ltd would be eligible for a tax holiday in respect of container freight station as container freight station qualifies as a 'Port' which is one of the infrastructure facilities for the purpose of section 80 IA of the Income tax Act. 1961. The term is interpreted in a wider sense which refers to compendium of services with container freight station forming an integral part of the same. 2. The container freight stations are largely expected to deal with break bulk cargo in the immediate hinter Land of t....
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....nto an agreement with the Central Govt for a State Govt or a local authority or any other statutory body for (i) developing (ii) operating and maintaining or (iii) developing, operating and maintaining a new infrastructure facility." 2.2 In the process the AO rejected all the contentions of the assessee in which it was contended that the certificate issued by JNPT earlier still hold the filed and assessee is not entitled for deduction under section 80IA(4) of the Act and the final observation of the AO to reject the claim of the assessee regarding non fulfillment of conditions are as under: "(i) The assessee company is not a 'port' (infrastructure facility) as per the Explanation to Section 801A(4) of the I T Act, 1961 and CBDT Circular No. 10 of 2005 dated 16th December, 2005. (ii)The assessee company has not entered into an agreement with the Central Govt/State Govt/Local authority or any other statutory body for developing, or operating and maintaining or developing, operating, maintaining a new infrastructure facility. (iii) The assessee company is not an 'inland port' as intended in the Explanation to Section 80 IA(4) of the I. T Act, 1961. There Is no CBDT Instruction dec....
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....nbsp; "60. The second question before us is-whether, on the facts and In the circumstances of the case, the learned CIT(A) was justified in upholding the disallowance of deduction under s. 80-IA(4) of the Act on merits? 61. The facts In the case of All Cargo Global Logistics Ltd. are that the assessee commenced CFS activities on 7th April, 2003. In this connection a letter has been received from the Commr. of Custom (Import), bearing No. 3 of 2003, dt. 28th Feb., 2003, classifying the area of 3,282 sq. mtrs. as customs area for the purpose of storage, stuffing/destuffing and clearance of export/import cargo. Subsequently, the assessee has been certified as a custodian of cargo under Customs Act, 1962, by notifying the area as "customs area". It has been submitted that a CFS is common user facility offering services in handling and temporary storing of import/export laden empties carried under customs control and supervision. It is also a bonded warehouse facility where customers can clear the cargo for export to various countries and receive customs- cleared cargo for home consumption. The staff of Customs Departme....
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....re located in such a place where ships or. vessels have V direct access. The goods which are brought in or removed from the ICDs are brought or taken either by railway wagons or by container trucks, as the case may be. Finally, it has been held that although ICD may not be a port. but it is an Inland port. The relevant portion of the decision is reproduced below: "19. The Tribunal erred in holding that because of the change made by the Finance Act, 2001 w.e.f. 1st April, 2002 by dropping the power of the CBDT to notify any other public facility of similar nature for the purpose of s. 80-IA of the Act, the ICD cannot be considered as Inland port. The error committed by the Tribunal is to overlook that both before and after the above amendment, inland ports were specifically mentioned as an Infrastructure facility in the statutory provision and In the understanding of the CBEC, which administers the Customs Act, an ICD was actually an Inland port. There is also no dispute that even in 1983 amendments had been made to the Customs Act by treating the ICD as part of the customs port for purpose o....
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.... and liberal construction. In the light of this decision, he dealt with the claim of the assessee under s. 80- (IA). It is submitted that in Board clarification dt. 6th Jan., 2011, in which circulars dt. 16th .Dec., 2005 and 23rd June, 2000 were considered, It has been clarified that ICDs and CFSs are not 'ports' located on any Inland waterway, river or canal and therefore they cannot be classified as inland ports" for the purpose of s. 80-IA(4). It is further submitted that the certificate Issued by Jawahar Lal Nehru Port Trust has been withdrawn by the port trust. It is also submitted that Inland Waterways Authority of India Act. 1985, provides the definition of the term infrastructure facilities", in its cl.. (f), as the structures such as docks, wharves, Jetties, stages. locks; buoys. inland ports, cargo handling equipments, road and rail access and cargo storage spaces and states that the expression "infrastructure facilities shall be construed accordingly. In this Act, Inland port is included as item, thus, this term has a distinct meaning, separate and apart from other terms. Therefore, ICDs and CFSs cannot be Interpreted to be Included in the term "inland port". It Is also ....