TaxTMI 
TaxTMI 
TaxTMI 
2019 (1) TMI 95
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.... views is not justified, the Id. Principal CIT failed to appreciate that when during .the original scrutiny assessment proceedings, entire particulars pertaining to its justified claim u/s.80IA had been furnished by the Appellant and the Id. Assessing Officer had taken a view which is settled after the application of mind; the jurisdiction u/s, 263 subsequently cannot be acquired to take another view; the impugned Order u/s. 263 may, therefore, be quashed for having no force under tax laws, (iii) Without prejudice to above, on a mere change of opinion, acquiring jurisdiction u/s. 263 becomes defective. MERITS : 2. Disallowance of deduction u/s. 80IA- Rs. 3,600,15,452/- The Id. Pr. CIT erred in giving direction to Assessing Officer to make disallowance u/s.80IA of Rs. 3,60,15,452/- without appreciating that the Appellant had complied to thee eligible norms for its claim which is also settled by judicial rulings; therefore, merely because the Revenue does not accept the decisions on the issue and taken up the same before the Hon'ble Supreme Court, the disallowance is uncalled for and the same may be deleted. 3. Levy of Penal Interests The Appellant, on merits, denies it....
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....al precedence considered favourable to them. Thereafter, the ld. CIT referred to the jurisdiction of the ld. CIT u/s. 263 of the Act and several case laws. Thereafter, he directed the A.O. to do the assessment afresh and consider the issue of allowability of deduction u/s. 80IA as per the conditions laid down in the Income Tax Act, 1961. The ld. CIT held as under: 6. When the facts of this case and the submission made are tested against discussion made above, it is apparent tha the assessment made by the a.O. on all the accounts raised in the Show Cause Notice and replied by the assessee is erroneous and prejudicial to the interest of revenue. the arguments made by the assessee company on the issue of allowability of deduction u/s. 80IA of Rs. 3,60,15,452/- are not acceptable, as the issue of allowability of deduction u/s.80IA on Receipts from operation of Container Freight Station, is not settled in favour of assessee, by the Apex Court. For claiming u/s 80IA, the assessee company vide letter dtd.10.2.2015 filed during scrutiny assessment proceedings, has relied upon the decision dtd.6.7.2012 of the Special Bench of the ITAT, Mumbai in the case of All Cargo Global Logistics Ltd....
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....t the above order, the assessee is in appeal before us. 6. We have heard both the counsel and perused the records. We find that the issue involved is squarely covered in assessee's favour by the decision of the Special Bench of the Tribunal as well as the Hon'ble jurisdictional High Court decision. Hence, in our considered opinion, there was no occasion for the ld. CIT to exercise jurisdiction u/s. 263 of the Act. Furthermore, we find that now the issue on merit is squarely covered in favour of the assessee by the decision of Hon'ble Apex Court in the case of CIT vs. Container Corporation of India Ltd. [2018] 93 taxmann.com 31 (SC) which reads as under : 10. As the whole point in dispute revolves around the ICDs, it would be appropriate to have an understanding about the same. The ICDs function for the benefit of exporters and importers located in industrial centers which are situated at distance from sea ports. The purpose of introducing them was to promote the export and import in the country as these depots acts as a facilitator and reduce inconvenience to the person who wishes to export or import but place of his business is situated in a land locked area i.e., away from....
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....tructure facility means:-a road, highway, bridge, airport, port or rail system or any other public facility of similar nature as may be notified by the Board in this behalf in Official Gazette;" The said provision gives the power to the Board to notify certain other enterprises which can avail the benefit of Section 80-IA of the IT Act, which do not fall within any of the specified categories but carries out activities of similar nature. 14. Further, Central Board of Direct Taxes (CBDT), in exercise of its power under Section 80-IA(12)(ca), vide Notification No.S.O.744(E) dated 01.09.1998 notified ICDs and CFSs as infrastructure facility. 15. In addition to the above, the Finance Act, 1998, which came into effect on 01.04.1999, made a change in the definition of 'Infrastructure facility' as is relevant to the present case. The words 'Inland water ways and inland ports' were added in the definition of infrastructure facility. Now, the definition reads as under: "Infrastructure Facility means road, bridge, airport, port, inland waterways and inland ports, rail system by any other public facility of similar nature as may be notified by the Board in this behalf ....
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....d to Section 80-IA(4) of the IT Act defining 'infrastructure facility' includes ICDs, there would have been no need for the CBDT to separately exercise its power given under the said Section, as it stood then, to notify it as infrastructure facility. However, the argument does not hold much weight behind it as the Notification which was issued by the CBDT came into effect on 01.09.1998 i.e., the time when the term 'Inland Port' was not in itself inserted in the provisions of Explanation attached to Section 80-IA(4) of the IT Act defining the term 'infrastructure facility'. It was inserted through Finance Act, 1998 which came into effect from 01.04.1999. So there seems to be no conflict within the Notification issued by the Board and the fact that the ICDs are Inland Ports or not. 20. Moreover, we find that the Respondent has been held entitled for the benefit of Section 80IA of the IT Act much before the Finance Act, 2001 which came into force on 01.04.2002 and exemption for the period of 10 years cannot be curtailed or denied by any subsequent amendment regarding the eligibility conditions under the period is modified or specific provision is made that th....