TaxTMI 
TaxTMI 
2016 (7) TMI 10
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....'the Act'). 2. The assessee has raised the following grounds:- ''2.1 The learned CIT(A) has erred in confirming that the interest income of INR 2,52,04,544/- derived from the industrial undertaking is not eligible for deduction u/s80IAB of the Act. 2.2 The learned CIT(A) has failed to appreciate the facts of the case and submissions made by the assessee to show that such interest income was inextricably linked to the company's business activity and therefore eligible for deduction under section 80IAB of the Act''. 3. The Brief facts of the case the assessee is in the business of developing and leasing of IT parks and filed its e-return of income on 25.08.2010 admitting nil income. The case was selected for scrutiny and notice u/s.143(....
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....ions of the assessee that the company business is only developing SEZ and leasing them to enterprises engaged in information technology and technology enabled service providers. The assessee company invested surplus arising out of business which is immediately not required in fixed deposits. The ld. Commissioner of Income Tax (Appeals) considered the detail submissions at para 5.1.1 of the order and judicial decisions relied by the assessee. But the ld. Commissioner of Income Tax (Appeals) gave findings that assessee suo-motu has claimed as the form 10CCB deduction u/sec. 80IAB for Rs. 1,68,54,543/- and agreed in assessment proceedings and observed para 5.2 of his order as under:- ''5.2 I have carefully considered the facts and the submiss....
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....istinguishable. The ground is dismissed''. and dismissed the appeal of the assessee. Aggrieved by the Commissioner of Income Tax (Appeals) order, the assessee assailed an appeal before Tribunal. 5. Before us, the ld. Authorised Representative of the assessee reiterated the submissions made in the assessment proceedings and appellate proceedings on the additional grounds admitted by the Commissioner of Income Tax (Appeals). The contention of the ld. Authorised Representative being that the nature of the business of the assessee being development and maintenance of IT park and the interest on deposits pertains to advance money security deposits received from tenants and they have to be refundable on termination of lease or vacation of premi....
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....nk and interest is receivable and offered in financial statements and whether interest takes the characteristic profit from business undertaking which is disputed. On perusal of the assessment order, the assessee has claimed deduction u/s.80IAB of the Act on the interest portion also but at the time of assessment based on the Auditor certificate form 10CCB claimed deduction only to the extent of Rs. 1,68,54,543/- and accepted the deduction to that extent and ld. Assessing Officer treated balance of Rs. 2,52,04,544/- as income from other sources. The ld. Authorised Representative before Commissioner of Income Tax (Appeals) has contested and filed additional grounds to treat interest income as business profits of undertaking eligible for dedu....