Direct Taxes Case laws - For May / Nov 2019 CA Final Exams - Part 3

Continuation from earlier article Part 2, This is Part 3

4. CIT v/s Container Corporation of India Limited [2018] 404 ITR 397 (SC)

Law: If assessee is, operating infrastructure facility, then assessee is eligible for deduction under Section 80 IA. Section 80 IA(4)(i), Explanation, defines infrastructure facility.

As per the definition, infrastructure facility includes inland port

Background:

Assessee is operating,
Inland container depots,
Container freight stations,
Port side container terminals

For profits derived from Inland Container Depots assessee claimed, deduction under Section 80 IA

Issue:

Whether Inland Container Depots, can be treated as infrastructure facility?
Whether assessee is eligible for deduction under Section 80 IA ?\

Assessee:

My Lord,

Section 80 IA(4)(i), Explanation, defines infrastructure facility.

As per the defenition, infrastrucure facility includes Inland Port.
Inland Container Depot can be treated as Inland Port.

AO:

Your Honour, this is absolutely ridiculous.........

how in this world............Ummm,

Inland Container Depot and Inland Port
are one and the same ?

Not Possible
Not possible
Not possible

Assessee: Yes My Lord,

Inland Container Depot and Inland Port are one and the same .........................................................

Possible
Possible
Possible

Judge: Will both of you keep quiet?

Allow me to think......... Yaaaaar.........

The moot point here is Customs Clearance.

In this case,
Customs Clearance is happening from Inland Container Depot.

Hence,
Inland Container Depot can be treated as Inland Port

Hence deduction under Section 80 IA is available.

The Case is closed...

Assessee: [ has a sign of relief......... starts reciting a poem by,

Harivansh Rai Bachchan, Sohanlal Dwivedi...

Himmat karne walonki, kabhi haar nahi hoti,
Koshish karne walonki, kabhi haar nahi hoti,

Asaphalata ek chunauti hi, sweekaar karo,
kya kami rah gayi hi, dekho aur sudhaar karo,

Jab tak na saphal ho, neend-chain ko tyaago tum,

Sangharshon ka maidaan chod, mat bhaago tum,

Kuch kiye bina hi, jai jai kaar nahi hoti,

Koshish karne walonki, kabhi haar nahi hoti.

The people who dare to be brave, will not lose,
The people who keep trying, will not lose,

Failure is a challenge, accept it,

See what is lacking, and improve upon it,

Until becoming successful, you quit sleep/peace/pleasures,
From troubles/challenges, you do not run away,

Without putting effort, fame/name will not come,
The people who keep trying, will not lose,

When assessee was reciting the poem.........

there was silence in the entire court room,

Everybody was listening...

Then..
AO: AO goes towards assessee. AO pats Assessee on his shoulder.

Looks at Assessee with praise and says, "I was just doing my duty"
Assessee: Assessee knods his head and says," I can understand Sir, no harsh feelings.

Lets have a cup of tea "

Then .......... both the Assesse and AO will have tea together.

Uske baad ?? after that ?
are yaar kamaal karte ho..........uske baad.........uske baad..........

after that.. they will go home............................

what else they can do............
where else they can go....................

Have a nice day............................

Many more case laws ..........will be coming soon......................................Keep in touch