TaxTMI 
TaxTMI 
2018 (6) TMI 1779
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....siness of Developing, Maintaining and Operating of Infrastructure Facilities. Return declaring an income of Rs. 29,53,100/- was filed on 30/09/2009. The same was processed u/s 143(1) on 13/09/2010. Case was selected for scrutiny under CASS and notice u/s 143(2) was sent on 20/08/2010. Subsequently, notices u/s 143(2) & 142(1) along with questionnaire were issued in response to which Chartered Accountant/Authorized Representative appeared from time to time and submitted the requisite details which were verified and placed on record by the Assessing Officer. During the year the assessee claimed deduction u/s 80-IA for profit earned of Rs. 5,26,17,182/-. The Assessing Officer observed that perusal of the P&L account as on 31.03.2009 revealed t....
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....infrastructural facilities and thereby not eligible for deduction u/s 80IA of the Act, 1961. Interest income was held to be assessable under the head 'Income from Other Sources" along with the miscellaneous income on which 80IA deduction is not eligible. Thus, the profit from developing, maintaining or operating infrastructural project which is eligible for deduction u/s 80IA, was computed at Rs. 4,76,91,476/- as against Rs. 5,26,17,182/- as claimed by the assessee thereby reducing the claim of 801A by Rs. 49,25,706/-. 5. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 6. The Ld. DR submitted that the Assessing Officer was right in holding that....
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.... ITR 355 (Del.) 6. CIT vs. Pandian Chemicals Ltd. 233 ITR 497 (Mad) 8. The Ld. AR made an alternative plea that Section 37 of the Income Tax Act lays down that expenses incurred and income should be set off against that particular income. The Ld. AR further submitted that in the present case, the assessee company had only a negative bank balance/bank over draft and the FDRs made by them only out of such over draft bank balances. The bank interest on such over draft is generally 2% to 4% more than bank interest on FDRs meaning thereby that no surplus income can results under this head. Therefore, the Ld. AR prayed that the order of the CIT(A) is just and proper and the appeal of the Revenue be dismissed. 9. We have heard both the partie....