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2020 (5) TMI 142 - ITAT KOLKATADeduction u/s 80IB(10) in respect of interest received and other income - recognition of immediate source of the income - as per AO the said income was not derived by the assessee from the business of development of housing project and the same, therefore, was not eligible for deduction u/s 80IB(10) - HELD THAT:- Income by way of transfer fees received by the assessee for Apartment Booking and interest received for delay in payment against Flat had a direct or first degree connection with the business of the assessee of developing a housing project and the same, therefore, was eligible for deduction under section 80IB(10). The immediate source of the said income was the business of the assessee of developing a housing project and therefore, the said income was eligible for deduction under section 80IB(10). Regarding the balance amount of other income the assessee has not been able to furnish any details of the same to show that the said amount was eligible for deduction under section 80IB(10). I accordingly allow partly Ground No. 1 of the assessee’s appeal. Alternative claim that the disallowance of deduction under section 80IB(10) in respect of interest income should be restricted to net interest and not gross interest as done by the authorities below - This alternative claim of the assessee is duly supported by the decision of ACG Associated Capsules Pvt. Limted –vs.- CIT [2012 (2) TMI 101 - SUPREME COURT] wherein it was held in the context of assesee’s claim for deduction under section 80HHC that 90% of not the gross interest but only the net interest which had been included in the profits of business of the assessee, as computed under the head “profits and gains of business or profession” should be deducted for determining the profits of the business eligible for deduction - direct AO to verify the amount of net interest keeping in view the direct nexus theory and allow appropriate relief to the assessee on this issue. Disallowance u/s 43B on account of ESI payable - assessee failed to produce any evidence to show that the same was deposited before furnishing its return of income for the year under consideration - HELD THAT:- Even at the time of hearing before the Tribunal, no such evidence has been brought on record on behalf of the assesee to show that the ESI payable was paid before the due date of filing of the return of income for the year under consideration - no justifiable reason to interfere with the impugned order of the ld. CIT(Appeals) confirming the disallowance made by AO - Decided against assessee.
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