TMI Blog2019 (9) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... d with the project of SEZ zone at Pallavaram but it is connected with the Phase II project of Thoraipakkam unit, a work which is in progress and from which no income was admitted during the period, the interest earned from bank deposits of SBI and SME branch is not eligible for the deduction U/s.80IA - Assessee s claim is partly allowed. - I.T.A. No. 770/CHNY/2019 - - - Dated:- 19-8-2019 - Shri George Mathan, Judicial Member And Shri S. Jayaraman, Accountant Member For the Appellant : Shri G. Baskar, Advocate For the Respondent : Shri AR.V. Sreenivasan, JCIT ORDER PER S. JAYARAMAN, ACCOUNTANT MEMBER:- The assessee filed this appeal aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icity deposit of the property is also eligible for deduction U/s.80IA of the Act. The interest of ₹ 37,03,479/- was earned from the bank deposits made with SBI, SME branch towards margin money for the loan availed. This also pertains to the infrastructure facility and therefore the Ld.AR pleaded that this interest should not have been considered for disallowance. He relied on the decision of the Bombay High Court in the case of M/s. Tema Exchangers Manufactures Pvt. Ltd., vs. ACIT in ITA No.415/2004 dated 18.07.2018. Inviting our attention to the Hon ble Jurisdictional High Court decisions in the case of Arul Mariammal Textiles Ltd., vs. ACIT, Coimbatore, [2018] 97 taxmann.com 298 and Camiceria Apparels India (P.) Ltd., vs. ACIT, Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of interest income from SBI for the deduction claim U/s.80IA, the Ld.DR submitted that the assessee is having ₹ 287,85,28,479/- as Reserves and Surplus. Further, the margin money deposited in the bank was towards Phase II project of Chennai One IT SEZ , at Thoraipakkam, as per sanction letter issued by the SBI dated 19.03.2014 and it is not in connection with Chennai One SEZ project at Pallavaram from which the impugned income is admitted and on which deduction U/s.80IA is claimed. Therefore, he supported the orders of the Ld.CIT(A) and Assessing Officer. 5. We heard the rival submissions and gone through the relevant material. During the year, admittedly, the assessee derived income only from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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