Deduction u/s. 80-IA(4) : A. Ys. 2003-04 to 2005-06: Infrastructure facility: Meaning of inland port: Inland container depots are inland ports: Assessee entitled to deduction:

The assessee, a public sector undertaking, was engaged in the business of handling and transportation of containerised cargo. The activity of the assessee was carried out mainly on its inland container depots, Central freight stations and port container terminals which were spread all over the country. The assessee had a total of 45 inland container depots. For the A. Ys. 2003-04 to 2005-06, the Assessing Officer disallowed the assessee’s claim for deduction u/s. 80-IA(4). The Tribunal upheld the disallowance.

On appeal by the assessee, the Delhi High Court reversed the decision of the Tribunal and held as under:

 “i) Out of the total 45 inland container depots operated by the assessee, except two, all others were notified by the Central Board of Direct Taxes for the purposes of section 80-IA(12)(ca). Having regard to the provisions of the Customs Act, the Communication issued by the Central Board of Excise and Customs as well as the Ministry of Commerce and Industry, the object of including “inland port” as an infrastructure facility and also that customs clearance also takes place in the inland container depot, the assessee’s claim that the inland container depots were inland ports under Explanation (d) to section 80-IA(4) required to be upheld.

ii) The appeals are allowed.”