Long-term renewable energy project financing receipts treated as business income; s36(1)(viii) deduction allowed, 14A and TDS disallowances deleted.

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....Deduction under s.36(1)(viii) was allowed as the assessee's long-term financing of renewable energy projects qualified as "development of infrastructure facility" under the "eligible business" definition, and post-01.04.2000 no CBDT approval was required; consistency from later years also supported eligibility. Recharacterization of various receipts as "income from other sources" was rejected since interest on deposits and staff loans, service/consortium fees, swap gains, refunds/write-backs and related miscellaneous items were inextricably linked to the financing business or taxable as business income u/s 41(1); accordingly assessed as business income. Disallowance u/s 14A was deleted for want of AO's recorded satisfaction and absence of exempt income. Depreciation was allowed on beneficial ownership. Disallowance u/s 40(a)(ia) for short TDS deduction was held inapplicable. - ITAT....