170. Definition of Port as Infrastructure facility for the purpose of sections 10(23G) and 80-IA

1. The Board has received various representations seeking clarification whether structures at ports for storage, loading and unloading etc. will fall under the definition of “port” for the purposes of sections 10(23G) and 80-IA of the Income-tax Act, 1961.

2. The Board has considered the matter and it has been decided that such structures will be included in the definition of “port” for the purposes of sections 10(23G) and 80-IA of the Income-tax Act, 1961, if the following conditions are fulfilled:

(a) the concerned port authority has issued a certificate that the said structures form part of the port, and

(b) such structures have been built under BOT or BOLT schemes and there is an agreement that the same would be transferred to the said authority on the expiry of the time stipulated in the agreement.

Circular : No. 793, dated 23-6-2000.

Clarification one

1. Reference is invited to Board’s Circular No. 793, dated 23-6-2000 and amendment in section 80-IA by the Finance Act, 2001.

2. “Port”, for the purposes of sections 10(23G) and 80-IA of the Income-tax Act, 1961, includes structures at the ports for storage, loading and unloading etc., if the following conditions are fulfilled:

(a) the concerned port authority has issued a certificate that the said structures form part of the port, and

(b) such structures have been built under the BOT or BOLT schemes and there is an agreement that the same would be transferred to the said authority on the expiry of the time stipulated in the agreement.

This definition is applicable to assessment year 2001-02 and any earlier assessment year.

3. However, for and from assessment year 2002-03 onwards, structures at the ports for storage, loading and unloading etc. will be included in the definition of “port” for the purpose of sections 10(23G) and 80-IA of the Income-tax Act, 1961, if the following condition is fulfilled:

the concerned port authority has issued a certificate that the said structures form part of the port,

Circular : No. 10/2005, dated 16-12-2005.