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2023 (9) TMI 374 - ITAT DELHIDeduction u/s 80IAB - income from sale of food and beverages - income for developing and operating SEZ -assessee is a SEZ developer and is primarily engaged in the business of developing and leasing of property in IT/ ITES Sector, Noida - HELD THAT:- In so far as Instruction No. 50 [ issued by GOI, Ministry of Commerce and Industry, Department of Commerce, SEZ Sector] it has authorized activities which can be undertaken by the developer, approved company developer by default, and one of the items is cafeteria/canteen for staff in the processing area. Since the income of the assessee is not derived from cafeteria/canteen for staff, therefore, the said Instruction is not applicable to the facts of the case. In so far as claim of interest expense is concerned, we find that while computing the income, the assessee has added back interest expense considered under the head “Income from other sources Rs. 57,19,934” and under the head income from other sources, the assessee has deducted interest expense of Rs. 88,767/- only, which means that the assessee has increased its eligible profit by Rs. 56,31,167/-. Considering the facts of the case in hand, the assessee ought to have reduced this amount from eligible profit. We, accordingly, direct AO to reduce Rs. 56,31,167/- from the eligible profit and recompute deduction u/s 80IAB - Under no circumstances sum can be considered as income under section 68 of the Act. With the above, the ground of the assessee is partly allowed.
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