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2013 (9) TMI 443 - ITAT COCHINDeduction u/s 80IA - Whether Clauses (a), (b) and (c) of sec. 80IA(4)(iv) are mutually exclusive - distribution of power within the industrial park area. - CIT disallowed deduction holding that all clauses are mutually exclusive - Held that:- legislative intention was to afford the tax benefit to all undertakings which were engaged in any of the three activities - clauses (a) and (b) of sub. Sec. 4(iv) to sec. 80IA was introduced with effect from 1.4.2000 and clause (c) was introduced only with effect from 1.4.2005, i.e., they were not introduced in one go - These three types of undertakings referred to in the said sub-clauses (a), (b) and (c) are different and independent of each other. Thus while dealing with one sub-clause, inference need not and cannot be drawn from the other sub- clause - Following decision of DCIT Vs. Maharaja Shree Umaid Mills Ltd. [2008 (6) TMI 255 - ITAT JAIPUR-B] - Decided against assessee. Interpretation of clause (b) of sec. 80IA(4)(iv) - CIT(A) has taken the view that the said clause provides exemption only to the profit derived from laying a network of new transmission or distribution lines - Held that:- the harmonious construction of clause (b) and the proviso there under, would be that the deduction u/s 80IA of the Act shall be allowed in respect of the profits derived from transmission or distribution of power through the new network. Had the intention of the parliament was to give deduction only to the undertaking which undertakes the work of laying network of new transmission or distribution lines and not to the undertaking which transmits or distributes the power, then clause (b) would have been worded accordingly and there would have been no necessity to insert a proviso for the said purpose. - Decided in favor of assessee. Deduction u/s 80IA - Interest income - Held that:- There is a difference between "income from business" and "Profits and gains derived from the eligible undertaking". Not all the business income can be classified as "Profits and gains derived from the eligible undertaking" - for application of the words "derived from", there must be a direct nexus between the profits and gains and the undertaking - the nexus of interest income with the business of the undertaking is not direct but incidental. The source of interest income is only bank deposits and security deposits - Following decision of CIT Vs. Sterling foods [1999 (4) TMI 1 - SUPREME Court] - Decided against assessee.
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