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2019 (1) TMI 803 - HC - Income TaxDeduction u/s. 80IA - interest received has a direct nexus with the development activities - it is an interest received on excess payment of tax which has no nexus with the business activity and it has not been derived from the I.T. Parks/S.E.Z. undertaking? - income from derived from the assessee's eligible business - Held that:- Assessee is engaged in the business of developing I.T. Parks and S.E.Z. and derives its income from leasing out such properties. Undisputedly, such income qualifies for deduction u/s 80IA. The revenue however contests the assessee's claim of such deduction for various other receipts such as interest on income tax refund, interest on FDRs etc. CIT (Appeals) and the Tribunal concurrently hold that such income was also derived from the assessee's principal business of leasing out the premises in I.T. Parks and S.E.Z. areas. We are broadly in agreement with the view of the Tribunal. The assessee having paid excess income tax, received refund with interest. The assessee had obtained deposits from the lessees for performance guarantee which would not invite any interest. The assessee parked such fund in bank deposits which earned interest. The entire transaction of leasing out the property at specified lease rent upon the lessees agreeing to offer deposit without claiming interest thereon is integral part of the assessee's principal business of leasing out the premises in I.T. Parks and S.E.Z. and therefore, Tribunal correctly concluded that such income can be stated to have been derived from the assessee's eligible business. - Decided against revenue.
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