Case Law Details
1. Brief facts of the case are that the assessee-company engaged in maintenance and operation of port services has filed its return of income for the A.Y. 2012-20 13 on 29.09.2012 declaring NIL total income after claiming deduction under section 80IA(4) for Rs.5,25,99,691 under normal provisions and Rs.5,24,55, 136 under the provisions of Section 1 15JB of the I.T. Act, 1961. The case was selected for scrutiny under CASS and accordingly, notices under section 143(2) and 142(1) were issued. In response to the notices, the Authorised Representative of the assessee appeared from time to time and furnished the information as called for. During the course of assessment proceedings, the A.O. noticed that the assessee has received two types of income i.e., lease rental from warehousing and lease rental from open yard which is not owned by the assessee. The assessee claimed deduction under section 80IA(4) on total income including the income received from lease rental on open yard. The A.O. observed that since open yard is not an infrastructure facility within the meaning of Section 80IA(4) of the Act, the assessee is not eligible for deduction under section 80IA(4) and accordingly disallowed the deduction claimed under section 80IA(4) at Rs.5,25,99,691.
2. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A), contending, inter alia, that the issue involved in this appeal is covered in favour of the assessee by the decision of ITAT, Hyderabad ‘B’ Bench in ITA.Nos. 1377 to 1380 and No.1389/Hyd/2014 for the A.Ys. 2006-07 to 2010-2011 in assessee’s own case, wherein the Hon’ble Tribunal has observed that the assessee is eligible for deduction under section 80IA(4) in respect of income received from lease rental on open yard. Assessee also relied upon the decision of Hon’ble Bombay High Court in the case of ABG Heavy Industries Ltd., (supra). The CIT(A) after considering the assessee’s explanation and also by following the decision of Coordinate Bech of Hyderabad Tribunal in assessee’s own case for the A.Ys. 2006- 07 to 2010-2011, deleted the additions made by the A.O. towards disallowance under section 80IA(4) of the I.T. Act, 1961. Aggrieved by the CIT(A) order, the Revenue is in appeal before us.
3. We have heard both the parties and considered the material on record. At the time of hearing the Ld. A.R. for the assessee submitted that the issue involved in this appeal is covered by the decision of ITAT, Hyderabad Bench in assessee’s own case in ITA.No. 1377 to 1380 and 1389/Hyd/2014 for the A.Ys. 2006-07 to 2010-2011 wherein the ITAT has allowed the deduction claimed under section 80IA(4) towards income received from lease rentals on open yard facility. The Ld. D.R. fairly accepted that the issue is covered in favour of the assessee. We find that the Coordinate Bench of ITAT, Hyderabad in assessee’s own case for the A.Ys. 2006-07 to 2010-2011 has considered the issue and after considering the ratio laid down by the Hon’ble Bombay High Court in the case of ABG Heavy Industries (supra) has held as under :
“Keeping in view the certificate dated 08.04.2005 issued by the Kakinada Deep Water Port in the light of CBDT Circular Nos. 793 dated 23.06.2000 and 10/2005 dated 16.12.2005, we are of the view that the issue involved in the present case relating to the claim of the assessee for deduction under section 80IA is squarely covered by the decision of Hon’ble Bombay High Court in the case of ABG Heavy Industries Ltd., (supra) and this position is not disputed even by the learned D.R. We therefore respectfully follow the decision of Hon’ble Bombay High Court in the case of ABG Heavy Industries Ltd., (supra) and uphold the impugned order of the Ld. CIT(A) allowing the claim of assessee for deduction under section 80IA.”
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