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2019 (1) TMI 458 - AT - Income TaxEligible for deduction u/s 80IA - income derived from business activities - Held that:- CIT(A) has decided the identical issue in favour of the assessee in assessee’s own appeal for the assessment year 2010-11 holding that the income from rent received by the assessee is directly related to the main business of the assessee and the amount is eligible for deduction u/s 80IA. DR did not point out any difference of facts in the assessee’s case for both the years. Admittedly, the issues involved in AY 2010-11 and the assessment year under consideration are identical. Moreover, the CIT(A) has not given any reason for taking a view inconsistent with the view taken in the earlier year on the identical issue. No reason to agree with the Ld. CIT(A). Moreover, the facts relied upon by the CIT(A) is different from the facts of the present case. The assessee had to make deposits under business compulsion. The revenue has not brought to our notice any decision contrary to the findings aforesaid rendered in similar set of facts. Hence, we respectively following the decision of the Cuttack Bench of the Tribunal allow this ground of appeal and direct the AO to allow the interest so earned by the assessee for the purpose of deduction u/s 80IA. AO is further directed to compute the amount after netting off the interest paid and interest received by the assessee during the year relevant to the assessment year under consideration. As regards sundry credit balance written off AO has rejected the claim of the assessee without giving any reason as to how the amounts in question are not eligible for the claim u/s 80IA. Similarly, the CIT(A) has affirmed the findings of the AO discussing the general principles of the law without giving specific reasons as to why the amounts in question cannot be treated as profits and gains derived from the eligible business of the assessee. Moreover, CIT(A) has not given any reason for taking a view contrary to the view already taken in the assessee’s appeal pertaining to the assessment year 2010-11 in the similar set of facts. Therefore, we are of the considered view that the findings of the Ld. CIT(A) are not based on cogent and convincing reasons. Hence, keeping in view the nature of income earned by the assessee in this case i.e., balance written back and miscellaneous income, we hold that the said amounts should be treated as profits and gains derived from the eligible business. Accordingly, we set aside the findings of the CIT(A) and direct the AO to treat the said amounts as profits and gains derived from the eligible business of the assessee. Interest received by the assessee on the TDS refund should be netted off against the interest expenditure for the purpose of computing profits and gains derived from the eligible unit of the assessee.
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