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2015 (5) TMI 387 - ITAT HYDERABADDeduction under section 80IA - assessee is a company which is engaged in the business of providing storage facilities and handling of cargo at Kakinada Sea Port - CIT(A) allowing the claim of the assessee for deduction - Held that:- Keeping in view the certificate dated 08.04.2005 issued by the Kakinada Deep Water Port in the light of CBDT Circular Nos. 793 dated 23.06.2000 and 10/2005 dated 16.12.2005, we are of the view that the issue involved in the present case relating to the claim of the assessee for deduction under section 80IA is squarely covered by the decision of Hon’ble Bombay High Court in the case of ABG Heavy Industries Ltd., (2010 (2) TMI 108 - BOMBAY HIGH COURT ) wherein a similar claim of assessee for deduction under section 80IA was allowed by the Hon’ble Bombay High Court relying inter alia on Circular Nos. 793 dated 23.06.2000 and 10/2005 dated 16.12.2005 issued by the CBDT and the facility provided by the assessee was an integral part of the port. The findings that the assessee had developed the infrastructure facility and that it was engaged in operating the cranes was, therefore, based on the material on record. The fact that the assessee was also maintaining the cranes was not disputed. The assessee was entitled to the special deduction under section 80IA. and this position is not disputed even by the learned D.R. - Decided in favour of assessee. Disallowance of expenditure incurred towards loan processing charges and rates and taxes for loan documentation - CIT(A) allowed the claim - Held that:- Assessee has relied on the definition of “Interest” given in section 2(28A) of the Act which provides that ‘interest’ means, interest payable in any manner in respect of any monies borrowed or debt incurred and includes any service fee or other charge in respect of the monies borrowed or debt incurred. Processing charges and other expenses incurred by the assessee in connection with the loan borrowed, thus, are to be considered in the nature of interest as per the definition given in section 2(28A) and the Ld. CIT(A) in our opinion, was fully justified in allowing the same as deduction as claimed by the assessee. We, therefore, uphold the impugned order of the Ld. CIT(A) on this issue - Decided in favour of assessee. - Decided in favour of assessee.
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