Assessee Not Entitled for Deduction without A Certificate Declaring The Warehouse as Part Of The Port: Bombay High Court

The Bombay High Court has held that the assessee cannot claim the deduction under Section 80IA(4) of the Income Tax Act in the absence of a certificate declaring the warehouse to be part of the port.

The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that the Jawaharlal Nehru Port Trust (JNPT) has declined to issue a certificate that the warehousing of the assessee is part of the port.

The assessee/respondent is a state government undertaking that 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.

The Assessing Officer, however, denied the benefit on the ground that the assessee had failed to furnish a certificate from the concerned Port Authority certifying that the structure was a part of the Port, which it considered mandatory in view of the Board’s notification dated June 23, 2000, followed by Circular No. 10 of 2005, dated December 16, 2005.

The ITAT held that the assessee has fulfilled all the conditions laid down for the deduction claimed under section 80IA(4).

Section 80IA allows a deduction of 100% of profits obtained from businesses for a period of 10 consecutive years out of 15 years from the date of its commencement.

The court, while dismissing the appeal, held that a similar claim was also denied to the assessee for the year 2009–10 in the absence of the certificate.

Case Title: Principal Commissioner of Income Tax Versus Maharashtra State Warehousing Corporation

Case No. - Income Tax Appeal 810 of 2018

Citation - 2023 LiveLaw (Bom) 28

Date: 09.01.2023

Counsel For Appellant: Advocate Suresh Kumar

Counsel For Respondent: Advocate Rucha Vaidya

Click Here To Read The Order