TaxTMI 
TaxTMI 
2021 (10) TMI 350
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....e Act") is highly unjustified, bad in law, without jurisdiction & void ab initio since, the Ld. PCIT has grossly erred in concluding that the Learned Assessing Officer ("the Ld. AO") has failed to carry out the necessary enquiries and investigation in relation to the issues which pertains to the material already on record. Hence, it is prayed that the Order passed by the Ld. PCIT under the provisions of section 263 of the Act may please be cancelled & quashed in l imine. GROUND NO. II 2. On the facts and in the circumstances of the case as well as in law, the Ld. PCIT has grossly erred in setting aside the assessment order passed by the Ld. AO under section 143(3) of the Act with direction to make fresh assessment on specified issues by holding that the said order is erroneous in so far as it is prejudicial to the interest of the revenue. The Ld. PCIT has failed to appreciate that the said assessment order has been passed by the Ld. AO after conducting necessary & diligent enquiries with specific emphasis on the claim of deduction u/ s. 80IA of the Act and conscious application of mind & deliberation to the material on record and hence, it is prayed that ....
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.... on this issue, the original order passed is neither erroneous nor prejudicial to the interest of the revenue." 3. As per the grounds of appeal, the assessee has sought to challenge the jurisdiction assumed by the PCIT under s.263 of the Act and as a corollary, sought to impugn the revisional order passed by the PCIT under s.263 of the Act. 4. Briefly stated, the assessee company is engaged in the eligible business of development, operation and maintenance of an infrastructure facility viz. Railway Siding/Logistic Park/Integrated Rail System under Private Siding Agreements (PSAs) with Indian Railways at three locations: (i) Siliyargi (CG)- Date of Commencement of Operations : 16.04.2007 (Initial Asst. Yr. 2008-09); (ii) Bhupdeopur, Raigarh (CG) - Date of commencement of Operations : 02.12.2008 (Initial Asst. Yr. 2009-10); & (iii) Tadali, Chandrapur (MH) - Date of commencement of Operations : 01.03.2011 (Initial Asst. Yr. 2011-12). 4.1 The assessee accordingly claimed that having satisfied the prescribed conditions, deduction u/s. 80IA(4) of the Act was claimed in various assessment years for the respective locations/sites as pointed out above. In....
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.... directions without showing any error and where the issue was properly examined in the assessment proceedings. We shall appropriately refer and deal with the various facets of the arguments in succeeding paragraphs. 9. The learned DR for the Revenue, on the other hand, relied upon the revisional order passed by the PCIT. 10. We have carefully considered the rival submissions and perused the revisional order passed by the CIT under s.263 of the Act as well as other materials referred to and relied upon by the respective parties and case laws cited. 10.1 First issue concerns improper allowance of deduction under s.80IA of the Act. As noted earlier, the assessee is engaged in the business of developing, operating and maintaining a logistic park (Railway Siding/Integrated Rail System) under an agreement with South East Central Railway, location at Silyari (C.G.), Bhupdeopur, Raigarh (CG) & Tadali, Chandrapur (Mah.). The assessee company started operations of its Logistics Park (Railway Siding) at Siliyari with effect from 16th April, 2007 i.e. Assessment Year 2008-09, Logistics Park (Railway Siding) at Bhupdeopur, Raigarh with effect from 2nd December, 2008 i.e. Assessment Yea....
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....d under s.80IA of the Act, further clarifications were provided. Another notice under s.142(1) of the Act dated 03rd November, 2017 was seeking yet another details. It is thus the case of the assessee that the entire conspectus of the case alongwith in depth examination of complete book of accounts and separate books of accounts and Form No. 10CCB etc. was looked into. It was after careful examination of relevant clauses of agreements entered with SECR/CR in respect of Railway sidings, valuing capital costs, cost incurred towards setting up on sidings etc. the deduction claimed under s.80IA(4) of the Act was allowed after particular consideration of past assessment history consistently allowing deduction in the preceding assessment years etc. in the identical factual matrix. 10.4 It is also asserted on behalf of the assessee that once pre- requisite conditions stipulated under s.80IA of the Act is satisfied and allowed in initial assessment years, deduction could not be withdrawn under s. 143(3) of the Act until the finality achieved in initial assessment year is disturbed. Consequently, the action of AO being plausible in law could not be disturbed under s.263 of the Act. For t....
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.... case and case laws noted above, we find that AO had carried out specific enquiries with regard to deduction claimed under s.80IA(4) of the Act and it was only after he was satisfied with the propriety of the claim, the continuing deductions claimed by the assessee left undisturbed. Significantly, AY 2015-16 in question is not the first year for claim of deduction under s.80IA(4) of the Act. The assessee has claimed deduction in respect of different sites from various initial assessment years noted earlier and no change in circumstances was noted by the PCIT which is warranted in a settled point. Thus, the acceptance of continuity of claim under s.80IA(4) of the Act cannot be seen with any concern without showing deviation in facts. It is further seen that private railway sidings have been treated as eligible infrastructure facility for the purposes of Section 80IA(4) of the Act by the co-ordinate benches. Lastly, the purport of enquiry directed by the PCIT is totally unintelligible. The PCIT himself has not carried out any examination or verification of facts and has simply directed the AO to 'may verify Form 10CC and initial years assessment orders of each business based on the c....