TaxTMI 
TaxTMI 
2014 (3) TMI 1024
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....ed by Sea Food Export Association of India, Sea Food Exporters and MIDCON (Marine Products Infrastructure Development Co-operation (P) Ltd, a subsidiary of MPEDA to promote sea food processing units. According to the ld.representtive, the assessee is a functional industrial estate to create basic infrastructure facility and to let them out to sea food exporters. The company was set up and started commercial production from the assessment year 2004-05. According to the ld.representtive, the assessee claimed deduction of Rs. 62,34,040 being the royalty paid to Sea Food Export Association of India. According to the ld.representative, as per the agreement dated 03-05-2006 executed by the assessee company and Sea Food Export Association of India....
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....so to section 40(a)(ia) in Finance Act, 2012 with effect from 01-04- 2013. The Kerala High Court in M/s Prudential Logistics And Transports vs ITO in I.T.A. No.1 of 2014 by judgment dated 13-01-2014 considering the Second Proviso to section 40(a)(ia) found that the amendment giving breathing space to the payer of the amount is with effect from 01-04-2013, therefore, the said benefit is not applicable to the assessee for the assessment year 2007-08. In view of this judgment of the Kerala High Court, according to the ld.representative, Second Proviso to section 40(a)(ia) which was introduced by Finance Act, 2012 with effect from 01- 04-2013 cannot be applied retrospectively. Therefore, in the instant case, merely because the recipient of the ....
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....y. Accordingly, the same is confirmed. 6. The second ground of appeal is with regard to disallowance of depreciation. According to the ld.representative, the business of the assessee is to create infrastructure facility and let them out to Sea Food Exporters. According to ld.representative, the moment the unit was handed over to the customer, the assessee put the unit for use in the business. According to the ld.representative, creation of the facility and letting them out to Sea Food Exporters is the business of the assessee. Therefore, as soon as the processing units are created and they were handed over to Sea Food Exporters, according to the ld.representative, the assessee put the processing unit in use. If the unit was not used by Sea....