ITO CORPORTE WARD 4 (3), CHENNAI V. M/S KAILASH SHIPPING SERVICES PVT LTD, CHENNAI

ITA 624/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4339 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 20-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: S SHANKARA NARAYANAN

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ ITA NO.624/CHNY/2018 /ASSESSMENT YEAR: 2013-14 THE INCOME TAX OFFICER CORPORATE WARD 4(3), CHENNAI 600 034. VS. M/S. KAILASH SHIPPING SERVICES PVT. LTD., WESCARE TOWERS, GROUND FLOOR, 16 CENOTAPH ROAD, TEYNAMPET, CHENNAI 18. [PAN:AAACK2806R] ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL. CIT / RESPONDENT BY : SHRI S. SHANKARA NARAYANAN, ADVOCATE / DATE OF HEARING : 06.02.2019 /DATE OF PRONOUNCEMENT : 12.02.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 8, CHENNAI DATED 15.12.2017 RELEVANT TO THE ASSESSMENT YEAR 2013-14. THE EFFECTIVE GROUNDS RAISED IN THE APPEAL OF THE REVENUE ARE THAT THE LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE MADE UNDER SECTION 80IA(4) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] AND DELETING THE DISALLOWANCE MADE UNDER SECTION 36(1)(VA) R.W.S. 2(24)(X) OF THE ACT. I.T.A. NO.624/CHNY/18 2 2. AT THE OUTSET, WITH REGARD TO THE DISALLOWANCE MADE UNDER SECTION 80IA(4) OF THE ACT, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2009-10 AND THE LD. CIT(A), BY FOLLOWING THE SAME, DIRECTED THE ASSESSING OFFICER TO ALLOW THE CLAIM OF THE ASSESSEE. THUS, THE LD. COUNSEL PRAYED THAT THE GROUND RAISED BY THE REVENUE SHOULD BE DISMISSED. ON THE OTHER HAND, THE LD. DR FAIRLY CONCEDED THE SUBMISSION OF THE LD. COUNSEL. 3. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IN THIS CASE, THE ASSESSEE HAS CLAIMED DEDUCTION UNDER SECTION 80IA OF THE ACT OF .5,85,94,.727/-. THE ASSESSING OFFICER DISALLOWED THE DEDUCTION ON THE GROUND THAT THE CONTAINER FREIGHT STATION [CFS] ACTIVITY IS NOT ELIGIBLE FOR DEDUCTION UNDER SECTION 80IA OF THE ACT. THIS ISSUE WAS SUBJECT MATTER IN APPEAL FOR THE ASSESSMENT YEAR 2009-10. IN THAT CASE, BY FOLLOWING THE DECISION IN THE CASE OF M/S. ALL CARGO LOGISTICS LTD. IN ITA NO. 5018/MUM/2010 DATED 06.07.2012, THE LD. CIT(A) HELD THAT THE CFS ACTIVITY IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80IA OF THE ACT, WHICH WAS CONFIRMED BY THE TRIBUNAL VIDE ORDER IN I.T.A. NO. 365/MDS/2014. AGAINST THE ORDER OF I.T.A. NO.624/CHNY/18 3 THE TRIBUNAL, THE DEPARTMENT PREFERRED FURTHER APPEAL AND VIDE ORDER IN T.C.A. NO. 497 OF 2015 DATED 23.07.2015, THE HONBLE MADRAS HIGH COURT SUSTAINED THE ORDER OF THE TRIBUNAL BY DISMISSING THE APPEAL FILED BY THE DEPARTMENT. BY FOLLOWING THE ABOVE DECISION OF THE HONBLE HIGH COURT AND THE ITAT, FOR THE ASSESSMENT YEAR UNDER CONSIDERATION ALSO, THE LD. CIT(A) HELD THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80IA OF THE ACT WITH RESPECT TO CFS AND ACCORDINGLY, DIRECTED THE ASSESSING OFFICER TO ALLOW THE CLAIM OF THE ASSESSEE. IN VIEW OF THE ABOVE, WE FIND NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE LD. CIT(A) AND THUS, THE GROUND RAISED BY THE REVENUE STANDS DISMISSED. 4. THE NEXT GROUND RAISED IN THE APPEAL OF THE REVENUE RELATES TO DISALLOWANCE TOWARDS DELAYED REMITTANCE OF PF & ESI TO THE EXTENT OF .1,91,931/-. IN VIEW OF THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF INDUSTRIAL SECURITY AND INTELLIGENCE PVT. LTD. IN T.C.A. NO. 585 OD 2016 AND SINCE THE REMITTANCE OF BOTH EMPLOYEES AND EMPLOYERS CONTRIBUTION WAS MADE WELL BEFORE THE LAST DATE FOR FILING THE INCOME TAX RETURN UNDER SECTION 139(1) OF THE ACT, THE LD. CIT(A) HAS HELD THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDER REGULAR PROVISIONS AND ACCORDINGLY DELETED THE ADDITION MADE BY THE ASSESSING OFFICER. WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A) ON THIS ISSUE. THUS, THE GROUND RAISED BY THE REVENUE STANDS DISMISSED. I.T.A. NO.624/CHNY/18 4 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THE 12 TH FEBRUARY, 2019 AT CHENNAI. SD/- SD/- ( INTURI RAMA RAO) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 12.02.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.