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2016 (2) TMI 1309 - ITAT CHENNAIDisallowance of deduction claimed u/s 80IA in respect of interest income from deposits - assessee submitted that interest was received from deposits - HELD THAT:- This Tribunal in the assessee’s own case for assessment year 2008-09 [2013 (9) TMI 1256 - ITAT CHENNAI] found that the interest income is not eligible for deduction u/s 80IA of the Act. In view of the above, this Tribunal do not find any reason to interfere with the order of the lower authority. Moreover, the interest income is not from business of the assessee. The source of income is from deposits made by the assessee, therefore, it is not eligible for deduction u/s 80IA of the Act. Accordingly, the order of the CIT(A) is confirmed. Deduction in respect of other income - HELD THAT:- Since in assessee’s own case for assessment year 2008-09, a co-ordinate Bench of this Tribunal found that other income is not eligible for deduction u/s 80IA of the Act and the CIT(A) has followed the order of this Tribunal, we do not find any reason to interfere with the order of the CIT(A). Accordingly, the same is confirmed. Exclusion of expenditure in respect of income which does not form part of the eligible profit for deduction u/s 80IA - HELD THAT:- What was not excluded in the eligible profit for computation of deduction u/s 80IA is interest received by the assessee from fixed deposits and other income. For earning interest from fixed deposits, the assessee need not spend any money or incur any expenditure. The details of other income are not available on record and no material is available on record to indicate that the assessee has incurred any expenditure for earning the other income. In those circumstances, this Tribunal is of the considered opinion that exclusion of the so called expenditure does not arise for consideration. Disallowance of gratuity amount paid to LIC - HELD THAT:- Creation of the trust is a mandatory pre-condition for payment of contribution by the assessee. In the case before us, for the year ended 31.3.2005, the trust was not created. The trust was created on 2.5.2015. Therefore, it cannot be said that the fund was paid for the irrevocable trust created exclusively for the benefit of the employees. In the absence of any material to indicate that the assessee has created an irrevocable trust, this Tribunal is of the considered opinion that the judgment of M/S TEXTOOL CO. LTD. [2009 (9) TMI 66 - SUPREME COURT] may not be applicable to the facts of the case. In view of the above, this Tribunal do not find any reason to interfere with the order of the lower authority. Accordingly, the same is confirmed.
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