Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 456 - ITAT CHENNAIDeduction under section 80IA - AO rejected the assessee's claim of deduction by holding that the receipts in question had risen from various rent/lease agreements, they would give rise to income under the head 'house property' instead of 'business' income - Held that:- The assessee has developed a software park by the name of ' Tidel Information Technology Park'; wherein, it has leased out its modules and other facilities to various clients in lieu of lease/rent in question. Its total rental income is Rs 54,19,88,282/-. The receipts from letting out the modules are Rs 51,98,81,901/. The balance amount of Rs 1,91,60,582/- has arisen from car parking charges, communication, electrical charges etc. It is also evident from the case file and paper book on record that in 1999, the assessee had applied to Government of India,(department of industries), for setting up an industrial park u/s 80IA. On 24.04.2009, it stood approved subject to various terms and conditions enumerated under rule 18(3) sub rule (2) of Income Tax Rules. Thereafter, the Central Board of Direct Taxes, vide its notification dated 26.12.1999, has also notified the industrial park under section 80IA(4)(iii). It is to be seen from both the above documents that the deduction under section 80IA has not been granted in perpetuity, but it is liable to be withdrawn if the assessee violates the conditions specified therein. However, till date no such withdrawal has come. So, the assessee enjoys the status of an eligible undertaking under section 80IA (4) (iii). Thus uphold the CIT(A)'s order that the assessee is eligible for claiming deduction u/s 80IA (4)(iii) qua the lease income in question. Depreciation for electrical items - CIT(A) directed the AO to grant claim - Held that:- On perusal of the CIT(A) order, it is found that qua this issue, he has relied upon his predecessor's order dated 16.01.2007 as well as tribunal 's order dated 08.08.2008 for assessment year 2003-2004 directing the AO that substance should prevail over the nomenclature and decide it afresh. As no material has been placed on record as how the issue has been decided by the AO CIT(A) has righty remitted the issue back to the file of the AO and find no reason to interfere. Car parking charges, communication electrical charges, electrical room rent, other rental income, rental two wheeler parking, rent for usage area, telecom room rent and usage of cable duct(trench) - treated as 'business' income OR 'other' sources - Held that:- As decided in South India Shipping Corporation Ltd Vs. CIT [1998 (2) TMI 43 - MADRAS High Court] interest received by a company which carried on business, from bank deposits and loans could only be taxable as in come from other sources and not as business income. On the anvil of this, the exclusion of interest from deposits for the purpose of computation of deduction u/s 80IA is liable to be confirmed. The miscellaneous income represents various miscellaneous items like water charges, insurance claims, STD booth and PCO, sale of tender documents etc., The rental income represents income from parking space, mobile phone network towers and other facilities etc. Lower authorities have held that this cannot be stated to be derived form the business of developing, operating and maintaining the infrastructure of the STP under consideration. See CIT Vs. Sterling Foods [1999 (4) TMI 1 - SUPREME Court] & CIT Vs. Raja Bahadur Kamakhaya Narayan Singh & Others [1948 (7) TMI 1 - Privy Council]. Thus the other receipts of operation and maintenance etc are held as income from 'other' sources.
|