• Notification Date: 16-01-2023
• Notification No: N/A

Income Tax Certificate from Port Authority is Mandatory for availing Deduction u/s 80IA (4) Income Tax

The Bombay High Court (HC) has ordered that obtaining a certificate from Port Authority is mandatory to avail of deduction benefits under section 80IA (4) of the Income Tax Act, 1961. Mr Suresh Kumar, Advocate appeared for the appellant and Ms Rucha Vaidya and Ms Farzeen Khambatta, Advocate appeared for the respondent. 

The revenue department challenged the order dated 28th July 2017 passed by the Income Tax Appellate Tribunal (ITAT), Pune (“Tribunal”), relevant to the assessment year 2011-12. It was held that Maharashtra State Warehousing Corporation, the assessee, was eligible for deduction claimed under section 80IA (4) of the Income Tax Act, amounting to Rs.6,33,26,452. The assessee is a State Government undertaking which 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 assessee claimed a deduction in terms of section 80IA (4) of the Income Tax Act. 

But the Assessing Officer denied the benefit on the ground that the assessee had failed to obtain a certificate from the concerned Port Authority that certifies that the structure was a part of the Port. The Assessing body considered it mandatory in view of the Board’s notification dated 23rd June 2000, followed by Circular No.10 of 2005 dated 16th December 2005. A Coram comprising Justice Dhiraj Singh Thakur & Justice Kamal Khata upheld the order of ITAT in light of the case of Assistant Commissioner of Income-tax Vs. JWC Logistics Park P. Ltd. and in Container Corporation of India Ltd. Vs. Asstt. Commissioner of Income Tax. The appeal of the assessee got dismissed.