The Bombay High Court dismissed the appeal for claiming the deduction in its return of income for the year 2011-12 under section 80IA(4) of the Income Tax Act, 1961 (‘the Act’). This Court reiterated that the assessee has to produce a certificate issued by the competent authority showing that the structure was a part of the Port. In the absence of a certificate, the deduction cannot be claimed under section 80IA(4) of the Act.
Brief Facts:
The present appeal was filed under section 260A of the Act against the order passed by the Income Tax Appellate Tribunal, Pune (“Tribunal”). In the impugned order, the Tribunal denied the assessee any deduction in its return of income for the year 2011-12 under section 80IA(4) of the Act. The following substantial question of law was raised for the consideration of this Court-
- Whether on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal, Pune (ITAT) had erred in holding that the assessee was eligible for deduction claimed under section 80IA(4) of the Act?
- Whether on the facts and in the circumstances of the case and in law, the ITAT, Pune had not appreciated the facts finding made by the A.O. that Jawaharlal Nehru Port Trust (JNPT) had declined to issue a certificate that Warehousing of the assessee is part of the Port?
Submission of the Appellant:
The Learned Counsel for the Appellant submitted that they had set up an Inland Container Depot (ICD) and Container Freight Station (CFS) in the vicinity of Jawaharlal Nehru Port Trust (JNPT). In its return of income, the Appellant claimed a deduction in terms of section 80IA (4) of the Act. However, his claim was denied by the assessing officer as the Appellant failed to produce a certificate showing that the structure was a part of the Port. Therefore, the Counsel challenged the condition of producing a certificate on a mandatory basis for claiming the deduction under section 80IA (4) of the Act.
Submission of the Respondent:
The Learned Counsel for the Respondent submitted that the assessee's claim of deduction could not be accepted on the ground that the assessee had failed to furnish a certificate from the concerned Port Authority certifying that the structure was a part of the Port. The Counsel submitted that production of the certificate is mandatory in view of the Board’s notification dated 23rd June 2000, followed by Circular No.10 of 2005 dated 16th December 2005.
Observation of the Court
This Court observed that a similar claim was also denied to the assessee for 2009-10, for similar reasons submitted by the Respondent. This finding of the Tribunal was followed even for the instant assessment year 2011-12. The Court mentioned that an appeal filed by the revenue against the order of the Tribunal, Appeal No.886 of 2017, regarding the assessment year 2009-10, also came to be dismissed vide order dated 24th September 2019 following the views expressed by Delhi High Court in Container Corporation of India Ltd. Vs. Asstt. Commissioner of Income Tax (2012)346 ITR 140 (Delhi) and this Court in Commissioner of Income Tax Vs. Continental Warehousing Corporation (2015) 374 ITR 645 (Bom).
Therefore, considering the above observations, this Court held that no view of this Court is required since a view had already been taken in Continental Warehousing Corporation (Supra) on the same issue raised in this appeal without any change in either facts or law.
The decision of the Court:
The Bombay High Court dismissed the appeal filed for claiming the deduction in income under section 80IA(4) of the Act.
Case Title: Principal Commissioner of Income Tax vs Maharashtra State Warehousing Corporation
Coram: Hon’ble Justice Dhiraj Singh Thakur & Kamal Khata
Case no.: INCOME TAX APPEAL NO. 810 of 2018
Advocate for the Appellant: Mr. Suresh Kumar
Advocate for the Respondent: Ms.Rucha Vaidya
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