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2022 (5) TMI 1225 - ITAT DELHIDeduction u/s. 80IA(4) (iii) - eligibility of interest on land premium for deduction under section 80IA - As per AO interest income shown by the assessee was the part of profit attributable to the business of the assessee and it was not ‘derived from’ eligible business activities - assessee submitted that the claim for deduction included interest on land premium on some industrial parks, in respect of which deduction under section 80IA had been claimed - CIT(A) deleted the addition - HELD THAT:- As the issue boils down to as to whether the receipts from the clients of the assessee who choose to make lumpsum upfront payment and who choose to make deferred installment payments along with interest are to be treated alike or not it is held that since the receipt of interest is intrinsically linked to the primary activity of allotment of plots in the industrial park, it is hereby held that the interest is derived from the eligible business and thus, eligible for the purpose of direction u/s. 80 IA of the Act. Ergo, we hereby affirm the decision of Ld. CIT(A).- Decided in favour of revenue.
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