ENNORE CARGO CONTAINER TERMINAL PRIVATE LIMITED, CHENNAI V. ACIT CENTRAL CIRCLE 2 (4) , CHENNAI

ITA 1798/CHNY/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3239 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 28-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Keywords: Set aside
• Section: 153A; 80IA; 263; 63; 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , ! . , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ! ./ ITA NO.1798/CHNY/2018 # /ASSESSMENT YEAR: 2012-13 ENNORE CARGO CONTAINER TERMINAL PRIVATE LIMITED NEW NO.64, OLD NO.17, 4 TH NORTH BEACH ROAD, OFF KRISHNAN KOIL STREET CHENNAI 600 001 [PAN: AABCE 4546M] VS. PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL 2, CHENNAI ( /APPELLANT) ( $%& /RESPONDENT) & ' ( / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE $%& ' ( /RESPONDENT BY : SHRI AR.V.SREENIVASAN, JCIT, DR ) ' *+ /DATE OF HEARING : 13.11.2019 ,-# ' *+ / DATE OF PRONOUNCEMENT : 13.11.2019 . / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THE APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORD ER OF THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL 2 PASSED U/S.2 63 IN C.NO.2744/C- 2/2016-17/42 DATED 28.03.2018 FOR THE ASSESSMENT YE AR 2012-13. ITA NO.1798/CHNY/2018 :- 2 -: 2. SHRI S. SRIDHAR, ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI AR.V. SREENIVASAN, JCIT REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LEARNED AUTHORIZED REPRE SENTATIVE THAT FOR THE ASSESSMENT YEAR 2012-13 THE ASSESSMENT WAS COMPLETE D U/S.143(3) R.W.S153A OF THE INCOME TAX ACT, 1961 DATED 31.03.2 016 AND THE ASSESSEE WAS GRANTED BENEFIT OF DEDUCTION U/S.80IA(4) OF THE ACT. IT WAS A SUBMISSION THAT THE LEARNED COMMISSIONER OF INCOME TAX ISSUED A SHOW CAUSE NOTICE U/S.263 ON 19.03.2018 AND IN RESPONSE TO THE SHOW C AUSE NOTICE, THE ASSESSEE HAD FILED A REPLY DATED 23.02.2018, WHEREI N IN PARAGRAPH 2.9 OF THE REPLY IT WAS SPECIFICALLY BROUGHT TO THE ATTENTION OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) THAT SIMILAR ISSUE HAD BEEN FU LLY ALLOWED BY THE LD.CIT(A) AND THE SAME WAS CONFIRMED BY THE JURISD ICTIONAL TRIBUNAL VIDE ITA NO.41/MDS/2016 DATED 12.05.2016 AND THE ORDER OF TH E TRIBUNAL HAD FURTHER BEEN AFFIRMED BY THE HONBLE JURISDICTIONAL HIGH CO URT VIDE T.C.(A) NOS.105, DATED 27.03.2017, WHEREIN THE ISSUE AS TO WHETHER T HE CONTAINER FREIGHT STATION CAN BE TERMED AS AN INFRASTRUCTURE FACILITY EVEN AFTER AMENDMENT OF SECTION 80-IA AND ELIGIBLE TO THE DEDUCTION U/S.80I A(4) WAS ELIGIBLE,HAD BEEN HELD IN FAVOUR OF THE ASSESSEE BY FOLLOWING THE DEC ISION THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS AL LOGISTICS (P) LTD, REPORTED IN 374 ITR 609. IT WAS A SUBMISSION THAT THIS ORDER O F THE HONBLE JURISDICTIONAL HIGH COURT HAS NOW ATTAINED FINALITY IN VIEW OF THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF COMMISSIONER OF INCOME TAX, DELHI-1 VS. ITA NO.1798/CHNY/2018 :- 3 -: CONTAINER CORPORATION OF INDIA LIMITED REPORTED IN [2018] 93 TAXMANN.COM 31 (SC), WHEREIN THE ASSESSEES CASE WAS ALSO CONNECTE D. IT WAS A SUBMISSION THAT THE LEARNED PRINCIPLE COMMISSIONER OF INCOME T AX HAD REFUSED TO ACCEPT THE CONTENTION OF THE ASSESSEE AND HAD BEEN DIRECTE D TO SET ASIDE THE ASSESSMENT ORDER U/S.143(4) R.W.S 153A AND HAD DIRE CTED THE ASSESSING OFFICER TO CONDUCT ENQUIRIES AS HE DEEMED FIT AND T O MAKE DUE VERIFICATION IN ACCORDANCE WITH LAW KEEPING THE OBSERVATION AND DIR ECTION GIVEN BY THE PRINCIPAL COMMISSIONER OF INCOME TAX. IT WAS A SUB MISSION THAT THE ASSESSEES CONTAINER FREIGHT STATION HAVING BEEN HE LD TO BE ELIGIBLE FOR THE DEDUCTION U/S.80IA(4) OF THE INCOME TAX ACT, 1961 B Y THE HIGHEST COURT OF THE COUNTRY. IT WAS NO MORE AN ISSUE WHICH COULD BE CO NSIDERED AS ERRONEOUS OR PREJUDICIAL TO THE INTEREST OF THE REVENUE SO AS TO WARRANT THE INVOCATION OF THE SECTION 263 OF THE ACT. 4. IN REPLY, THE LEARNED DEPARTMENTAL REPRESENTATIV E VEHEMENTLY SUPPORTED THE ORDER OF THE LEARNED PRINCIPAL COMMIS SIONER OF INCOME TAX . 5. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND PERU SED THE MATERIALS AVAILABLE ON RECORD. 6. AT THE OUTSET, IT SHOULD BE APPRECIATED THAT THE DEDUCTION U/S. 80IA IS ELIGIBLE FOR A CONTINUOUS PERIOD OF TEN ASSESSMENT YEARS. THE HONBLE SUPREME COURT HAS IN THE CASE OF THE ASSESSEE FOR T HE ASSESSMENT YEARS 2007-08 AND 2010-11 CONFIRMED THE ORDER OF THE HON BLE JURISDICTIONAL HIGH COURT IN THE ASSESSEES OWN CASE, WHEREIN THE ASSES SEE HAS BEEN HELD TO BE ELIGIBLE FOR DEDUCTION U/S. 80IA(4) IN RESPECT OF T HE CONTAINER FREIGHT STATION. ITA NO.1798/CHNY/2018 :- 4 -: THE ASSESSMENT YEAR UNDER APPEAL IS 2012-13. THIS IS WELL WITHIN THE TEN YEAR PERIOD. IN ANY CASE, THE ISSUE HAVING SETTLED BY THE HONBLE SUPREME COURT IN THE ASSESSEES OWN CASE, IT CANNOT BE SAID THAT THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER GRANTING THE ASSESS EE THE BENEFIT OF DEDUCTION U/S.80IA(4) IN RESPECT OF THE CONTAINER F REIGHT STATION IS AN ERROR MUCH LESS AN ERROR WHICH IS PREJUDICIAL TO THE INTE REST OF THE REVENUE. IN THE CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE ORDER PA SSED U/S.263 BY THE LD.CIT IS UNSUSTAINABLE ON THE FACTS OF THE PRESENT CASE A ND IN VIEW OF THE DECISION OF THE HONBLE SUPREME COURT IN THE ASSESSEES OWN CAS E (SUPRA). 8. IN THE RESULT, THE ORDER PASSED U/S.263 STAND S QUASHED AND THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH NOVEMBER, 2019 IN CHENNAI. SD/- ( . ) ( S. JAYARAMAN ) + /ACCOUNTANT MEMBER /CHENNAI, /! /DATED: 13 TH NOVEMBER, 2019 . IA, SR. PS SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER . ' $*01 21#* /COPY TO: 1. & /APPELLANT 2. $%& /RESPONDENT 3. ) 3* ( )/CIT(A) 4. ) 3* /CIT 5. 1 45 $* /DR 6. 56 7 /GF