The Bombay High Court has allowed Deduction under Section 80IA of the Income Tax Act for Container Freight Station run by Logistic Park.
The division bench comprising of Justice S.J Kathawalla and Justice Akil Qureshi was considering the question “Whether on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal was justified in allowing the assessee’s claim of deduction under Section 80-IA(4) of Rs. 4,78,56,228/- without appreciating the fact that the assessee did not fulfil the required conditions as prescribed for claiming deduction u/S. 80-IA(4), as the inland container depot/container freight station is not included in inland ports as ports on rivers or canals?
While dismissing the appeal filed by Income Tax Department, the Court observed that “The impugned order of the Tribunal dismissed the Revenue’s Appeal before it by holding that the Container Freight Station (CFS) run by the assessee is eligible for deduction under Section 80IA of the Act as an infrastructure facility”.
Relying on a precedent of following the decisions of the Special Bench of the Tribunal in M/s. All Cargo Global Logistics Ltd. Vs. DCIT (ITA No.5018 to 5022 and 5059) rendered on 6th July, 2012 and the decision of the Regular Bench of the Tribunal in the case of Continental Warehousing Corporation (Nhava Sheva) Vs. ACIT (ITA No. 7055/Mum/2011) dated 31st August, 2012, the Court also observed that, “The submission of the Revenue that as Appeals have been filed against the aforesaid two decisions of the Tribunal, before this Court, the Revenue’s Appeal be allowed, was not accepted by the Tribunal. In the meantime, the above two Tribunal decisions in case of All Cargo Global Logistics Ltd. (supra) and Continental Warehousing Corporation (Nhava Sheva) (supra) have been upheld by this Court in Commissioner of Income-Tax v. 1. Continental Warehousing Corporation (Nhava Sheva) Ltd. and anr. [2015] 374 ITR 645 (Bom).
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