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2015 (9) TMI 650 - ITAT CHENNAIEligibility for deduction under section 80IA - whether lease rent income received from letting out modules of software technology park to various lessees would constitute income from business and eligible for deduction under section 80IA? - Held that:- The issues in both the appeals of the assessee and Revenue have been decided by the Tribunal in assessee’s own case for the assessment year 2008-09 holding that lease rent income from modules built up space of industrial park is assessable under the head ‘income from business’ and interest income and other income is to be assessed under the head “income from other sources”. Therefore, we direct the Assessing Officer to treat interest income and other income only under the head “income from other sources” and allow deduction under section 80IA on rest of the incomes i.e. rent from premises, operation and maintenance income, revenue sharing income, common facilities such as rent from auditorium and rent from others - Decided against revenue. As far as the contention of the assessee that interest on debtors should be considered as income from business in view of the decision of jurisdictional High Court in Madras Motors Ltd.(2002 (3) TMI 10 - MADRAS High Court), we find that the decision is distinguishable on facts. In that decision, it was the case of the assessee where the assessee, an export oriented company, is manufacturing forgings derived interest on delayed payment of sale proceeds. In the case of the assessee interest was not received on export of sale proceeds but it was delay in paying the rental income to the assessee. Therefore the decision relied on by the assessee is not applicable to the facts of the present case. - Decided against assessee.
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