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2019 (9) TMI 1130 - AT - Income TaxDeduction u/s.80IA - interest accrued on the electricity deposit AND deposit with SBI - HELD THAT:- During the year, admittedly, the assessee derived income only from the SEZ project at Pallavaram. Since the interest accrued on the electricity deposit is incidental to the SEZ, Pallavaram unit from which the assessee admitted income and claimed deduction U/s.80IA of the Act, the assessee's claim is allowable in accordance with ratio of the Jurisdictional High Court decision in the case of Arul Mariammal Textiles Ltd. [2018 (8) TMI 1729 - MADRAS HIGH COURT] . However, since the deposit with SBI is not connected with the project of SEZ zone at Pallavaram but it is connected with the Phase II project of Thoraipakkam unit, a work which is in progress and from which no income was admitted during the period, the interest earned from bank deposits of SBI and SME branch is not eligible for the deduction U/s.80IA - Assessee’s claim is partly allowed.
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