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2019 (6) TMI 1370 - AT - Income TaxDeduction u/s 80IAB - interest from fixed deposit - HELD THAT:- we are of the view that the issue has been squarely covered by the decision of the Hon‟ble ITAT [2014 (8) TMI 959 - ITAT MUMBAI] and subsequently the issue has been decided by the CIT(A) in favour of the assessee in the Assessment years of 2011-12 & 2012-13 which are not subsequently changed and varied. It was held that the FDs were made out of funds received for the business of the appellant in the form of grants for land acquisition or non-convertible debentures and not out of any surplus funds generated from the business of the appellant.The facts are not distinguishable at this stage also. No decision the contrary to the said decision has been placed on record, therefore, in the said circumstances, we set aside the finding of the CIT(A) on this issue and decide this issue in favour of the assessee against the revenue. Deduction u/s 80IAB - interest income arise out of advances to contractor - HELD THAT:- Since the matter of controversy has duly been covered in favour of the assessee by the decision of the Hon‟ble ITAT in the assessee‟s own case for the A.Y.2008-09 [2014 (8) TMI 959 - ITAT MUMBAI], therefore, by honoring the said decision we allowed the claim of the assessee. Deduction u/s 80IAB - income from processing fees and lease premium - HELD THAT:- Issue has duly been covered by the decision of the Hon‟ble ITAT in the assessee‟s own case for the A.Y.2007-08 in [2013 (11) TMI 933 - ITAT MUMBAI] . We also find support of the decision in case of Shreeji Exhibitors Vs. ACIT [2015 (8) TMI 886 - ITAT MUMBAI], Asiatic Stores & Soda Fountain Vs. ITO, [2017 (10) TMI 1080 - ITAT MUMBAI] . Taking into account all the facts and circumstances, we are of the view that the income in question is liable to be treated as income from business. Taxability of grant from government under head business and rental income - deduction u/s 80IAB - HELD THAT:- Taking into account all the facts and circumstances and by relying upon the above mentioned law in City and Industrial Development Corporation of Maharashtra Ltd. Vs. ACIT [2012 (9) TMI 331 - ITAT MUMBAI] , we are of the view that the grant in sum of ₹ 1 crores released by Government of Maharashtra on account of repairs and maintenance of airports is not liable to be treated as income of the assessee being in the nature of capital receipt. We noticed that the main object of the assessee is sale and leasing of land. Taking into account all the facts and circumstances, we are of the view that the rental income to the tune of ₹ 1,05,000/- is liable to be treated as income business. Accordingly, we decide this issue in favour of the assessee against the revenue. Addition u/s 14A - HELD THAT:- The factual position is not in dispute as the assessee did not earn any exempt income. It is quite clear that the assessee did not earn exempt income in the relevant Assessment Year, therefore, there should not be disallowance in view of the provisions u/s 14A r.w. Rule 8D of the Act. Accordingly, we set aside the finding of the CIT(A) on this issue and hold that the no disallowance is required in view of the provisions u/s 14A r.w. Rule 8D of the Act. Accordingly, this issue is decided in favour of the assessee against the revenue.
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