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2017 (3) TMI 1896 - AT - Income TaxDeduction u/s 80IA(4) - Claim denied as assessee was not engaged in development of new infrastructure project - whether merely increasing the thickness & widening of an existing road would not qualify as a new infrastructure project ? - HELD THAT:- We do not agree with the authorities below that it is merely work of the maintenance and repairs but in fact it is a work of bringing into existence new infrastructure facility which is in the nature of road. We, therefore, allow the ground taken by the assessee and hold that the assessee is entitled for deduction u/s 80IA(4) of the Act and direct the Assessing Officer to allow deduction to the assessee - As deduction u/s 80IA (4) is liable to be allowed and ground of appeal no. 1 raised by the appellant is allowed. Disallowance of interest income earned by the appellant-company on account of fixed deposits created as Debt Service Reserve Account against the term loan taken for the purpose of business - HELD THAT:- Revenue has not placed any material on record to point out any distinguishing feature in the facts of the case under consideration and the facts in assessee’s own case for A.Y. 2006-07 nor placed any material on record to demonstrate that the decision of Tribunal in assessee’s own case for A.Y. 2006-07 [2013 (4) TMI 758 - ITAT PUNE] has been set aside by the Higher Judicial Authorities. With respect to the interest income being eligible for deduction u/s 80IA(4), we find that Ld. CIT(A) has given a finding that the fixed deposit was an essential part for availing the loan whereby assessee was required to maintain Debt Services Reserve account and for that purpose it had to necessarily place fixed deposit and on such fixed deposits the assessee had earned interest. He therefore held it to be connected with the business of the assessee. CIT(A) thereafter relying on the various decisions cited therein has allowed the claim of the assessee. Before us, Revenue has not placed any material on record to demonstrate that as to how the decisions relied upon by Ld. CIT(A) would not applicable to the present facts of the assessee. Considering the totality of the aforesaid facts, we find no reason to interfere with the order of Ld. CIT(A) and thus the grounds of the Revenue are dismissed.
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