May 2022
Industrial undertaking — Special deduction u/s 80-IA — Rule of consistency — Assessee carrying out operation and maintenance of multi-purpose berth in port — Deduction granted by appellate authorities on facts in first assessment year and order attaining finality — Deduction could not be disallowed for subsequent assessment years when there was no change in circumstances — Letter issued and agreement with port authorities would satisfy requirement
By K. B. Bhujle
Advocate
10 Principal ClT vs. T. M. International Logistic Ltd. [2022] 442 ITR 87 (Cal) A.Ys: 2004-05 and 2005-06 Date of order: 20th January, 2022 S.80-IA of ITA, 1961
Industrial undertaking — Special deduction u/s 80-IA — Rule of consistency — Assessee carrying out operation and maintenance of multi-purpose berth in port — Deduction granted by appellate authorities on facts in first assessment year and order attaining finality — Deduction could not be disallowed for subsequent assessment years when there was no change in circumstances — Letter issued and agreement with port authorities would satisfy requirementThe assessee was in the business of terminal port operation and maintenance. For the A.Ys. 2004-05 and 2005-06, the assessee filed the return of income and claimed deduction u/s 80-IA of the Income-tax Act, 1961. The Assessing Officer rejected the claim on the ground that the assessee was operating and maintaining a multi purpose-berth and did not operate a port. The assessee submitted a letter issued by the port authorities stating that the berth at the dock complex had been allotted to the assessee on a leave and licence basis for thirty years, and it had the exclusive licence to equip, construct, finance, operate, manage, maintain and replace the project facilities and services. The Assessing Officer held that the letter had no significance regarding the deduction claimed u/s 80-IA and that no details were furnish
