The Delhi bench of Income Tax Appellate Tribunal ( ITAT ) allowed deduction claimed under Section 80IA of the Income Tax Act, 1961 on account of profit derived as per the agreement with Delhi International Airport Limited ( DIAL ).
In the present case the assessee Celebi Delhi Cargo Terminal Management India Pvt. Ltd.is engaged in the business of warehouse management at Indira Gandhi International Airport ( IGIA ), New Delhi as one stop services provider for customers which includes airlines, exporters, importers, domestic air cargo, perishable, pharma and express handling.
Furthermore assessee is a joint venture between a Turkish Company M/s Celebi Hava Servisi and M/s Delhi International Airport Limited ( DIAL ) formed as a Special Purpose Vehicle Company for the up-gradation, operation and maintenance of the cargo terminal at Indira Gandhi International Airport (IGIA), New Delhi.
The assessee entered into a an Operation Management and Development Agreement ( OMDA ) with the Airport Authority of India ( AAI ) under which DIAL has been granted the exclusive right and authority during the term of OMDA ( 30 years w.e.f. 03/05/2006 ) to operate, maintain, develop, design, construct, upgrade, modernize, finance and manage the IGIA, New Delhi.
According to the concession agreement between M/s DIAL, M/s Celebi Hava Servisi and the assessee on 24/08/2009, the assessee received concession for a period of 25 years to upgrade, modernize and finance the cargo terminal and the common area and to operate, manage and maintain the same for rendering the cargo services.
Consequently, the company claimed deduction u/s 80IA of the Act for the profits derived from the said activity for A.Y. 2011-12, 2012-13 and A.Y.2013-14 granted relief to the assessee by directing the AO to grant deduction under Section 80IA of the Income Tax Act.
Therefore the two-member bench Of M. Balaganesh ( Accountant Member ) and Yogesh Kumar U.S. ( Judicial Member ) allowed deduction claimed under Section 80IA of the Income Tax Act, 1961 on account of profit derived as per the agreement with Delhi International Airport Limited ( DIAL ).
Ankit Agrawal, counsel appeared for the assessee and Vivek Kumar Upadhyay,counsel appeared for revenue.
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