PCIT Vs Bothra Shipping Services Private Limited (Calcutta High Court)
Calcutta High Court allowed deduction under section 80IA(iv) of the Income Tax Act for development of Mechanised Port Handling System. Thus, deduction u/s. 80IA(iv) available in case of infrastructural development of port.
Facts- The Government of Andhra Pradesh (AP) entered into an agreement with Kakinada Sea Port Limited (KSPL) vide concession agreement dated 19.03.1999 for operation of existing berth, develop and operate one more berth and operation, maintenance and management of common facilities of the entire port through private participation. KSPL entered into an agreement with the assessee on 19.04.2012 for the development of 8 MMTPA Mechanised Port Handling System for unloading and rail dispatch in Kakinada Deep Water Port at berth no. 5 and its backup area.
On an application made by the assessee to the customs authorities, the Commissioner of Central Excise, Customs and Service Tax, Visakhapatnam granted permission for construction and operation of Mechanised Port Handling System vide permission letter dated 01.02.2013. After receiving the due permission, the assessee developed the infrastructural facilities. On 11.08.2015, a certificate was issued by the port officer, Port Department, Government of AP stating that the 8 MMTPA Mechanised Port Handling System is an infrastructural facility and a part of Kakinada Deep Water Port, Kakinada. The assessee having developed the new infrastructural facility, maintained and operated it, claimed deduction u/s. 80IA(iv) of the Act for both the assessment years.
