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2021 (2) TMI 895 - AT - Income TaxDisallowance of deduction u/s 80-IA - other income shown by the assessee was not eligible for deduction - AO was of the view that assessee being in the business of generation and distribution of power, it shall be eligible for deduction only from profits earned from that business and not from “other income” - HELD THAT:- As decided in own case A.Y. 2010-11[2019 (5) TMI 1664 - ITAT DELHI] If the amounts are not paid at the proper time and interest is awarded or paid for such delay, such interest is only an accretion to the assessee's receipts from the contracts. It is obviously attributable and incidental to the business carried on by him. It would not be correct, as the Tribunal has held, to say that this interest is totally de hors the contract business carried on by the assessee. It is well settled that interest can be assessed under the head 'Income from other sources' only if it cannot be brought within one or the other of the specific heads of charge. We find it difficult to comprehend how the interest receipts by the assessee can be treated as receipts which flow to him de hors the business which is carried on by him. In our view, the interest payable to him certainly partakes of the same character as the receipts for the payment of which he was otherwise entitled under the contract and which payment has been delayed as a result of certain disputes between the parties. It cannot be separated from the other amounts granted to the assessee under the awards and treated as 'Income from other sources - we are of the considered view that the disallowance made while computing the deduction allowable u/s 80-IA of the Act is not justified. MAT Computation u/s 115JB - unascertained liability - interest to beneficiary states, which may have to be paid in case of reduction in tariff as a result of revision order - HELD THAT:- As relying on own case [2018 (3) TMI 1589 - PUNJAB AND HARYANA HIGH COURT] we hold that the AO was not justified and in not allowing the claim as unascertained liability. We therefore, direct the AO to treat the amount as ascertained liability for the purpose of computing income under normal tax provisions and also for the purpose of computing book profits u/s 115JB. Thus the grounds of the assessee are allowed. Disallowance made u/s 14A read with Rule 8D - HELD THAT:- We find that identical issue arose for A.Y. 2012-13 [2020 (3) TMI 1308 - ITAT DELHI] and the Co-ordinate Bench of Tribunal held that AO was not justified in disallowing the expenditure by invoking the provision of Section 14A r.w.r 8D of the Act. Computing the book-profit in respect of depreciation claimed on amortization of land - HELD THAT:- As relying on assessee's own case n A.Y. 2012-13 [2020 (3) TMI 1308 - ITAT DELHI] direction of CIT(A) in deleting the disallowance confirmed.
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