Container Freight Station can claim deduction u/s 80 1A (4): ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Pune bench consisting of Inturi Rama Rao, Accountant Member and SS Viswanethra Ravi, Judicial Member held that Container Freight Station can claim deduction under Section 80 1 A (4).

The appeal is filed by the Revenue against the order dated 05-01-2018 passed by the Commissioner of Income Tax in favour of M/s. Continental Warehousing Corporation (Nhava Sheva) Ltd. The only issue is to be decided is whether the CIT(A) justified in allowing deduction u/s. 80IA (4) of the Act in respect of Container Freight Station (CFS).

The Tribunal noted that “this issue is covered in favour of the assessee by the decision of Supreme Court in a batch of appeals. A similar issue based on same identical facts came up before this Tribunal in the assessee’s own case for A.Y. 2013-14 and by placing reliance on the decision of the Supreme Court, the Tribunal decided the issue in favour of the assessee by holding that the assessee is entitled to claim deduction u/s. 80IA (4) of the Act in respect of Container Freight Station.”

Section 80-IA of the I.T. Act, 1961, grants deductions in respect of profits and gains from Industrial undertakings or enterprises engaged in Infrastructure Development, etc. As per section 80-IA (1), where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any business referred to in section 80-IA (4), there shall be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent of profits and gains derived from such business for ten consecutive assessment years.

The Tribunal held “we hold that the assessee is entitled to claim deduction u/s. 80 IA(4) of the Act in respect of Container Freight Station.

To Read the full text of the Order CLICK HERE

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