AI Drafter 
TaxTMI 
TaxTMI 
2015 (9) TMI 650
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.... Revenue is that Commissioner of Income Tax (Appeals) erred in holding that lease rent income received from letting out modules of software technology park to various lessees would constitute income from business and eligible for deduction under section 80IA of the Act. 3. Counsel for the assessee submits that the issue is squarely covered in favour of the assessee in assessee's own case for the assessment year 2008-09 in ITA No. 2104 & 2122/Mds/2011 & C.O No.18/Mds/2012 dated 27th September, 2013, a copy of the order is placed on record. 4. In the assessee's appeal, the assessee contends that Commissioner of Income Tax (Appeals) erred in holding that assessee is not entitled to deduction under section 80IA of the Act in respect of in....
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....bunal observed as under:- "9. Heard both sides. Perused the orders of lower authorities and case laws relied on by the parties. Insofar as the lease rent from industrial park i.e. income from providing modules consisting of built-up space with common infrastructure facilities is concerned, the Commissioner of Income Tax (Appeals) considering the submissions of the assessee and the various agreements and approvals entered into by the assessee for the purpose of setting up of industrial park held that the said income is to be assessed as profits and gains from business or profession eligible for deduction under section 80IA of the Act. While holding so, the Commissioner of Income Tax (Appeals) held as under:- "6.10. I have careful....
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....nist:ry of Finance, Government of India vide notification dated 20.12.1999 in S.O.No.1251(E) has notified the assessee company as an industrial park under clause (iii) of sub section (4) of section 80IA of the for the purpose of deduction u/s 80IA(1). The income derived by the appellant company was from providing modules consisting of built up space with common infrastructure facilities like 110/33 KV dedicated sub-station for power, centralized air conditioning system of 6000 TR capacity, telecommunication installations, 100% DG set back-up, 10.5 MVA capacity etc. in the industrial park and other ancillary services to the users. Thus, the appellant has carried out real, substantial, systematic and organized activity. Since the word 'busine....
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....n industrial park For the purpose of section 80lA of the Act, it is clear that the appellant can provide built-up space for industrial use which means the appellant can lease the built-up space for industrial use which means the appellant can lease the built-up space in the industrial park developed, maintained and operated by it. Further, it is noticed that the lease rent collected from the lessees is for land, building and plant & machinery and other built in infrastructural facilities in the modules leased out. In other words, it is a composite lease rent. Since the appellant has developed industrial park for information technology/software technology and since the industrial park was notified by the Central Government under clause (iii)....
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....Commissioner of Income Tax (Appeals) held that rental income, operation and maintenance income, a/c. charges, electricity charges are eligible for deduction under section 80IA(4) of the Act. 12. Following the decision of the Hon'ble Madras High Court in the case of Elnet Technolgies Pvt.Ltd (supra) and the decision of the co-ordinate Bench of this Tribunal in the case of Ticel Bio Park Ltd. (supra), we hold that except the interest income of 7,74,19,358/-and other income of 21,29,999/- rest of the incomes are assessable under the head "income from business" for the purpose of computing deduction under section 80IA(4) of the Act. Therefore, we direct the Assessing Officer to treat interest income and other income only under the head "inco....