DCIT CORPORATE CIRCLE 1(1), CHENNAI vs. A L LOGISTICS PVT. LTD., CHENNAI

The Revenue filed this appeal against the order of the Commissioner of Income Tax (Appeals) -1, Chennai in dated 19.09.2017 for assessment year 2013-14.

M/s. A L Logistics Pvt Ltd., the assessee, owns and maintains a container freight station and had claimed deduction u/s. 80IA for assessment year 2012-13. This issue was subject matter before the Hon’ble Jurisdictional High Court in the assessee’s case and Hon’ble Madras High Court in TCA No. 1031 of 2014 dated 23.12.2014 upheld the order of the tribunal , rendered relying on the decision in the case of Container Corporation of India Ltd, vs ACIT (2012) 346 ITR 140, Delhi and dismissed the Revenue’s appeal. In sum, it held that the very fact that work relating to customs is performed at these inland container depots/CFSs, qualify them as inland ports, eligible for benefit u/s. 80IA(4)(i). Further, the assessee’s facility has been approved by the Central Government in-as-much it has been vide public notice dated 10.11.2003 notified as a ‘customs area’, satisfying the condition of sec 80IA(4)(i)(b). This is in fact the admitted position. However, the Revenue disallowed the assessee’s claim u/s. 80IA clarifying that it has not accepted the decision of the Hon’ble Jurisdictional High Court and had moved the Hon’ble Apex Court by way of an SLP. The CIT(A) following the Hon’ble High Court order, supra, and the ITAT order in the assessee’s case in assessment year 2012-13 in dated 17.01.2017 allowed the appeal. Aggrieved, the Revenue filed this appeal. In the grounds, before us, the Revenue has pleaded that an SLP has been filed against the Delhi High Court decision in the case of CIT vs Container Corporation of India Ltd. also.

We heard the rival submissions. The decision of the Hon’ble Jurisdictional High Court is binding on all authorities working within its jurisdiction. The fact that an SLP has been filed, the admission of which is not known, would have no bearing in the matter. Respectfully following the decision by the Hon’ble High Court, supra, following this tribunal decision for assessment year 2012-13, supra, we uphold the order of the CIT(A).

In the result, the Revenue’s appeal is dismissed.