TaxTMI 
TaxTMI 
2026 (6) TMI 657
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....he Act following his predecessors in AY 2012-13. On further appeal, the CIT(A) allowed appeal in favour of the assessee by placing reliance on the decision of the coordinate bench in assessee's own case for A.Y 2012-13. The Revenue is in appeal before the Tribunal against the order of the CIT(A). 3. We have heard the parties, and perused the material available on record. During the course of hearing it is brought to our attention that the Coordinate Bench of the Tribunal in assessee's own case for AY 2012-13, 2016-17 to 2018-19 has considered an identical issue and has allowed the appeal in favour of the assessee. The relevant observations of the Coordinate Bench for AY 2012-13 is extracted hereunder: 9. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. The fact with regard to the industrial park developed by M/s. Khivraj Tech Park Pvt Ltd was duly approved by the Department of Policy and Promotion, Ministry of Commerce and Industries, Government of India vide notification no. 15/12/2005-IP&ID, dated 25.07.2016 and was also duly notified by the CBDT vide notification no. 331/2006, dated 30.11.....
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.... before 30.11.2005, no such condition is stipulated in section 80IA(4)(iii) of the Act. Therefore, from the above it is very clear that transfer u/s. 80IA(4)(iii) of the Act, is qua the undertaking and not qua the assessee. Therefore, the reasons given by the Assessing Officer to deny deduction u/s. 80IA(4)(iii) of the Act, with the successor undertaking is not formed within date prescribed under Industrial Park Scheme, 2002 & Industrial Park Scheme, 2008 is not correct and devoid of merits. 11. The Assessing Officer denied deduction on the ground that transferor undertaking and transferee undertaking shall be notified as per Industrial Park Scheme. In the present case, transferor undertaking is duly notified, whereas the transferee undertaking is not notified in any of the section. In our considered view, the Assessing Officer is once again failed to understand the provisions of section 80IA(4)(iii) of the Act, in right perspective because as we have stated in earlier part of this order transfer u/s. 80IA(4)(iii) of the Act is qua the undertaking and not qua the assessee. The undertaking owned by the transferor is same undertaking owned by the transferee. It is not a case....
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....s a transfer of operation and maintenance of industrial park. In the facts of the appellant case, the entire undertaking which developed the industrial park has been transferred and not merely the operation and maintenance alone. Therefore, in our considered view, the reasons given by the Assessing Officer to allow deduction u/s. 80IA(4) of the Act only to operation and maintenance is not in accordance with law. 13. Having said so, let us come back to exclusion of interest income earned from fixed deposits kept with bank. The assessee has claimed deduction u/s. 80IA(4)(iii) of the Act on interest income earned from fixed deposit on the ground that the said income has also derived from industrial undertaking by development, operation and maintenance of industrial park. It was the contention of the revenue that the only income derived from operation and maintenance qualify for deduction and interest income earned out of deposits cannot form part of eligible income in context of section 80IA(4) of the Act. Although, in principle we agree with the contention of the revenue that interest income earned from fixed deposits kept with bank cannot be considered as income derived fro....
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....between the funds utilized for keeping fixed deposits in bank and interest income earned from banks. If interest income is to be assessed under the head income from other source, then corresponding interest paid on loan borrowed for the purpose of funds utilized for making fixed deposits also needs to be allowed as deduction. Therefore, we direct the Assessing Officer to exclude interest income from income derived from industrial undertaking and assess separately under the head income from other source. We also direct the Assessing Officer to allow deduction towards corresponding interest expenditure linked to such income. The Assessing Officer is also directed to exclude interest portion that is relatable to interest income while computing deduction u/s. 80IA(4) of the Act. 15. The Department has also contended that the status of the assessee should be that of AOP and not firm. Section 184 of the Act provides the situations under which partnership firm can be treated as AOP. The conditions of section 184 of the Act have been duly complied and same is not under dispute. Further, the MOA of partner companies authorizes to enter into partnership arrangements as required unde....