The Tax Publishers2020 TaxPub(DT) 4543 (Mad-HC)

INCOME TAX ACT, 1961

Section 80-IA

Where notification that was issued by CBEC dt. 24-4-2007 in terms holds that considering the nature of work carried out at these ICDs, they can be termed as Inland Ports. Further, the communication issued on behalf of Ministry of Commerce and Industry confirming that the ICDs are Inland Ports and Revenue was unable to put forward any reasonable explanation as to why these notifications and communication should not be relied upon to hold ICDs as Inland Ports, therefore, deduction could not be disallowed to assessee.

Deduction under section 80-IA - Container Freight Station constitutes an 'inland port' - Entitlement of -

Issue arose for consideration as to Whether Tribunal was right and justified in holding that Container Freight Station constitutes an 'inland port' and therefore, assessee was entitled for deduction under section 80-IA(4).Held: Notification that was issued by CBEC dt. 24-4-2007 in terms holds that considering nature of work carried out at these ICDs, they can be termed as Inland Ports. Further, the communication issued on behalf of the Ministry of Commerce and Industry confirming that the ICDs are Inland Ports. Though both the Notification and communication are not binding on CBDT to decide whether ICDs can be termed as Inland Ports within meaning of section 80-IA, Revenue was unable to put forward any reasonable explanation as to why these notifications and communication should not be relied upon to hold ICDs as Inland Ports. It cannot be held that the term 'Inland Ports' is used differently under section 80-IA. Therefore, deduction was to be allowed to assessee.

Followed:CIT v. Container Corporation of India Ltd. (2018) 404 ITR 397 (SC) : 2018 TaxPub(DT) 2137 (SC), CIT v. Sanco Trans Ltd. [T.C.A.Nos.105 & 106 of 2018, dt. 19-11-2019] and CIT v. AL. Logistics Pvt. Ltd. (2015) 374 ITR 609 (Mad) : 2015 TaxPub(DT) 2635 (Mad-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14 & 2014-15

IN THE MADRAS HIGH COURT

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