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2019 (1) TMI 148 - AT - Income TaxDeduction under section 80IAB - development income earned as accrued on account of agreement entered into between assessee company and its co-developer, M/s. DLF Assets Private Limited (DAPL) - claim of the assessee is based upon the approval granted to the assessee by the Board of Approvals of Special Economic Zone (SEZ) to the co-developer agreement with the aforesaid DAPL - as per AO assessee not admissible qua the profit derived from SEZ project at Gurgaon as the assessee had merely sold the bare shell building to the co-developer, M/s. DAPL, which is not an authorized operation under the Special Economic Zone Act, 2005 and the Special Economic Zone Rules, 2006 - Held that:- Following the decision rendered by the coordinate Bench of the Tribunal in assessee’s own case for AY 2008-09 and in view of the fact that the year under assessment is third year of claiming deduction, it is proved on file that assessee company is a developer under the SEZ Act and the SEZ is duly notified and all the profits derived by the assessee company from the business of development operation and maintenance of SEZ. Consequently, on the basis of approval given by the Board of Approvals for the transfer of bare shell to the co-developer as per agreement, the profit arising to the assessee from the aforesaid authorized transactions is eligible for deduction u/s 80IAB of the Act. So, we find no illegality or perversity in the findings returned by ld. CIT (A) - decided against the Revenue. Treatment to signage income received by the assessee company from tenants - ‘income from other sources’ or ‘income from house property’- disallowance of deduction u/s 24(a) - Held that:- Tribunal in case of Manpreet Singh vs. ITO – (2015 (2) TMI 159 - ITAT DELHI) wherein it was held that, “the income earned by the assessee for renting of terrace for installation of mobile antenna was taxable as ‘income from house property’ and as such deduction u/s 24(a) @ 30% of the annual value was allowable.” When it is not in dispute that the assessee company has derived the signage income from the tenants from the space owned by the assessee company and not from the outsiders as it allowed tenants to use the space at the atrium/ different floors for putting signage, the signage income has to be treated as ‘income from house property’ and as such is eligible for deduction u/s 24(a) of the Act @ 30% of such income. So, finding no illegality or perversity in the findings returned by ld. CIT (A) on this issue, this ground is determined against the Revenue.
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