The division bench of the Hyderabad Income Tax Appellate Tribunal (ITAT) held that Open yard is “infrastructure facility” within the meaning of section 80IA(4) of the Income Tax Act and therefore, the assessee can claim the benefit of the same.
The assessee received lease rental income from warehousing and from open yard which is not owned by them and claimed deduction under section 80IA(4) of the Income Tax Act. However, the Assessing Officer, rejected the claim on open yard and held that the same is not an “infrastructure facility” within the meaning of section 80IA(4) of the Income Tax Act.
Before the Tribunal, the assessee contended that the issue has been already concluded in favour of them in an earlier case, by the Co-ordinate bench of the Tribunal relying upon the decision of the Bombay High Court in the case of ABG Heavy Industries.
Following the above decision, the bench held that the assessee is eligible for deduction under section 80IA(4) of the Income Tax Act in respect of income from lease rental from open yard.
Read the full text of the order below.
