The Tax Publishers2019 TaxPub(DT) 2139 (Mum-Trib)

INCOME TAX ACT, 1961

Section 80-IA(4)

Considering the nature of work performed at CFS, same could not be termed as Ports. However, taking into consideration the fact that a part of activities that were carried out at ports such as customs clearance were also carried out at these ICFs and the claim of assessee could be considered within the term 'Inland port' as used in Explanation to section 80-IA(4). Accordingly, CFS was Inland port and subject to the provisions of section 80-IA, deduction could be claimed for income earned out of CFS.

Deduction under section 80-IA(4) - Allowability - Container freight station -

Assessee claimed deduction under section 80-IA. AO disallowed deduction holding that Container Freight Station (CFS) was not an eligible infrastructure facility as provided in explanation to section 80-IA(4) as the same was neither a port nor an inland port as mentioned in said Explanation.Held: Considering the nature of work performed at CFS, same could not be termed as Ports. However, taking into consideration the fact that a part of activities that were carried out at ports such as customs clearance were also carried out at these ICFs and , the claim of assessee could be considered within the term 'Inland port' as used in Explanation to section 80-IA(4). Accordingly, CFS was Inland port and subject to the provisions of section 80-IA, deduction could be claimed for income earned out of CFS.

Followed:CIT v. Container Corporation of India Ltd. (CA No. 8900 of 2012) : 2018 TaxPub(DT) 2137 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :


INCOME TAX ACT, 1961

Section 14A Rule 8D

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