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2016 (2) TMI 1308 - AT - Income TaxDisallowance of deduction u/s 80IA in respect of interest income - assessee has received interest on fixed deposits made with banks - deposits were made from the advance received from the tenants for occupying the commercial space - HELD THAT:- Deduction u/s 80IA is to be allowed on the profit derived by an undertaking from the business of developing or operating and maintaining infrastructure facilities. In this case, admittedly, the interest income was not derived from the industrial undertaking but from the deposits made by the assessee from the banks. Therefore, the interest income has to be necessarily classified as income from other sources and hence, it cannot be construed as derived from industrial undertaking. Therefore, the assessee is not eligible to claim deduction u/s 80IA in respect of interest income. Deduction u/s 80IA in respect of other income other than interest income - HELD THAT:- For earning interest income from bank, the assessee is not expected to incur any expenditure. Therefore, the assessee cannot claim any expenditure for earning interest income from fixed deposits. In respect of other income other than the interest income from fixed deposits, this Tribunal is of the considered opinion that the assessee is eligible for exemption u/s 80IA, therefore, the alternative claim made by the assessee does not survive in respect of the income from other sources other than the interest income. Therefore, the alternative ground raised by the assessee is dismissed. Disallowance u/s 43B being provision of 80% of cenvat credit amount relating to service tax - Raising a specific ground as Ground No.29 before the CIT(A) - HELD THAT:- It is an admitted fact that the assessee has contested disallowance u/s 43B of the Act being provision of 80% of cenvat credit amount relating to service tax. Admittedly, this ground raised by the assessee as Ground No.29 was not disposed of by the CIT(A). Therefore, this Tribunal is of the considered opinion that the CIT(A) has to dispose of this specific ground raised by the assessee as Ground No.29. Accordingly, this ground raised by the assessee with regard to disallowance u/s 43B is remitted back to the file of the CIT(A). The CIT(A) shall consider and decide the issue in accordance with law after giving a reasonable opportunity to the assessee.
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