Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 930 - AT - Income TaxDeduction u/s 80IA (4) (iii) - interest income shown by the assessee was the part of profit attributable to the business of the assessee and it was not derived from the business activities - HELD THAT:- CIT(A) has returned a categorical finding after duly considering all the facts of the case. The Ld. CIT(A) has referred to a letter dated 13th February, 2013 emanating from the Office of Principal Secretary, Industrial Development, wherein it has been specifically stated that the allotment of plots and collection for the same is to done by the assessee as part of the management of the Industrial Park and therefore, all the money collected for such allotment has to be considered as being derived from the business of running of industrial park. As been noted by the Ld. CIT(A) that the amounts which were specifically due for payment to the Government were shown as liabilities in its account and the balance was taken as receipts for the purposes of computation of eligible income. CIT(A) has also referred to the notification issued by the CBDT in respect of deduction u/s 80IA for industrial park and has, thereafter, come to the conclusion that the assessee was eligible for deduction u/s 80IA even on the amount disallowed by the AO. DR has, although, vehemently argued against the finding returned by the CIT(A), he could not controvert the findings of fact as recorded by the Ld. CIT(A) in the impugned order. DR also could not point out any error in law in the impugned order. CIT(A) has also referred and relied on the judgment passed in the case of CIT vs. Govinda Choudhary & Sons, [1992 (4) TMI 8 - SUPREME COURT] wherein it was held that the interest receipt on delayed payment cannot be separated from the other amounts granted to the assessee under the awards and, hence, cannot be treated as income from other sources. As laid down by the Hon’ble Apex Court in this case that amount awarded to the Contractor assessee as interest for delay in payment of his dues took the same character as the receipts for payment of which he was otherwise entitled under the contract and, therefore, the same was taxable as business income and not as income from other sources. We find no error on such reliance by the Ld. CIT(A). Similarly, ITAT Chandigarh Bench in the case of ACIT vs. Jaiparkash Hydro Power Ltd. [2013 (6) TMI 478 - ITAT CHANDIGARH] has held that when interest is received on account of delayed payment from customers, it would definitely constitute income from eligible business income because such interest had direct nexus with receipt from eligible business and, therefore, deduction u/s 80IA of the Act would be admissible. In the case of CIT vs. Suzlon Energy Ltd. [2013 (7) TMI 697 - GUJARAT HIGH COURT], while considering the allowability of deduction u/s 80 IB of the Act, held that interest income on late recovery of sale proceeds from debtors was eligible for deduction u/s 80IB - Interest receipt on delayed payments has been held to be business income. It is our considered opinion that the Ld. CIT(A) has rightly allowed the assessee’s claim of deduction u/s 80IA and we have no reason to interfere with the same. We uphold the findings of the Ld. CIT(A) and dismiss the appeal filed by the Department.
|