TaxTMI 
TaxTMI 
TaxTMI 
2018 (4) TMI 1810
X X X X Extracts X X X X
X X X X Extracts X X X X
....the common order of the ld. Commissioner of Income Tax (Appeals) 11, Chennai dated 28.04.2017 relevant to the assessment years 2011-12 and 2012-13. First, we shall take up assessee's appeal. 2. The common effective ground raised in both the appeals of the assessee is that the ld. CIT(A) erred in holding that the assessee is not entitled to claim deduction of interest income and other income under section 80IA of the Income Tax Act, 1961 ["Act" in short] and to treat the same under the head 'Other Sources' as against the claim of the assessee as income from business. The assessee has claimed following interest income and other income as deduction under section 80IA of the Act: A.Y. 2011-12 A.Y. 2012-13 1. Interest on fixe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erefrom is business income and thus, the expenses should be fully allowed against business income. He further submits that appeal against the order of the Tribunal has been filed before the Hon'ble High Court and the same has been admitted in T.C.(A) No. 27 of 2014 and prayed that the orders of authorities below shall be reversed and allowed both the claims of the assessee as deduction under section 80IA of the Act. 5. On the other hand, the ld. DR strongly supported the orders of authorities below and further submitted that the issues is squarely covered against the assessee by the decision of the jurisdictional Tribunal in assessee's own case, which was also followed in subsequent assessment years. 6. We have heard both sides, perused t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....CIT(A) erred in directing the Assessing Officer to follow the decision of the Tribunal rendered in assessee's own case for the assessment years 2008-09 and 2010-11, wherein, it was held that the lease rent income received from letting out modules of STP to various lessees would constitute income from business and was eligible for deduction under section 80IA of the Act. 7.1 In the assessment order, after elaborately discussing and distinguishing the provisions of sections, the Assessing Officer held that the provisions of section 80IA(4)(iii) of the Act are applicable only for the profits derived out of development and sale of built up space and not applicable for rented property and accordingly, disallowed the claim of rental income as de....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ision of the Hon'ble Madras High Court in the case of CIT v. Elnet Technologies Ltd. (supra), the Coordinate Benches of the Tribunal held that the lease rent income from modules/built up space of the Industrial Park is assessable under the head 'income from business' and such income is eligible for deduction under section 80IA of the Act. The above decision of the Tribunal has also been followed in the assessment year 2010-11 in I.T.A. No. 49/Mds/2015 vide order dated 26.08.2015. The ld. DR could not controvert the above findings of the Tribunal and brought on record any higher Court decision having modified or reversed the above findings of the Tribunal as well as the decision of the Hon'ble Madras High Court in the case of CIT v. Elnet Te....
X X X X Extracts X X X X
X X X X Extracts X X X X
....efore, to keep the issue alive, the order of the ld. CIT(A) should be reversed. However, in the case of Joint Investment Pvt. Ltd. v. CIT (supra), the Hon'ble Delhi High Court has observed and the head-notes are as under: Income-Expenditure incurred in relation to income not includible in total income-Disallowance-Assessee was engaged in diverse investment activities and in the course of its business derived income from rent, sale of investments, dividend and interest-For AY 2009-10, assessee had reported a loss of specified amount-Assessee declared tax exempt income in the form of dividend to the tune of Rs. 48,90,000-Assessee volunteered Rs. 2,97,440 as attributable u/s14A for the purpose of disallowance-AO on the basis of his own under....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ome"-This proportion or portion of the tax exempt income surely cannot swallow the entire amount as has happened in this case-ITAT as well as the AO and CIT(A) had escaped the mandate of Section 14A(2)-Impugned order of the ITAT was set aside-Question of law was answered in favour of the assessee-Order of the AO was set aside-Initiation of penalty proceedings also was set aside- Matter was remitted to the AO for fresh consideration in accordance with the above directions - Assessee's appeal allowed." 8.1 In the present case, the assessee has earned dividend income of Rs..14,00,000/- in the assessment year 2011-12 and Rs..20,00,000/- in the assessment year 2012-13 and claimed it as exempt. However, the Assessing Officer determined the expen....