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TMI Blog2016 (2) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... order. 2. Shri R. Vijayaraghavan, ld. Counsel for the assessee submitted that for the assessment year 2006-07 in I.T.A.No. 1404/Mds/2014, the first ground of appeal is disallowance of deduction u/s 80IA in respect of interest income. According to the ld. Counsel, the assessee has received interest on fixed deposits made with banks. The deposits were made from the advance received from the tenants for occupying the commercial space. The ld. Counsel fairly submitted that this Tribunal considered this issue in the earlier assessment year in I.T.A.No.750/Mds/2007, dated 8.8.2008 and in I.T.A.No.2104/ Mds/2011 dated 27.9.2013 and found that the assessee is not entitled to claim deduction u/s 80IA in respect of interest income received from bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived rental income from such facility. Therefore, this Tribunal is of the considered opinion that other than the interest from fixed deposits and from other financial institutions, the rental income is eligible for exemption u/s 80IA of the Act. In fact, this Tribunal in assessee's own case in I.T.A.No. 2123/Mds/2011 dated 2.4.2013 found that the assessee is eligible for exemption u/s 80IA in respect of such income. By following the order of this Tribunal in assessee's own case, the orders of the lower authorities are set aside and the Assessing Officer is directed to grant exemption u/s 80IA of the Act in respect of other income. 9. The assessee has also raised an alternative ground to exclude the corresponding expenditure and depr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Assessing Officer. Even otherwise, according to the ld. Counsel, the Assessing Officer reopened the assessment due to change of opinion. The ld. Counsel has placed his reliance on the judgment of Apex Court in the case of CIT vs Kelvinator of India Ltd, 320 ITR 561. 14. The ld. Counsel further submitted that the Assessing Officer, in the course of regular assessment called for specific details with regard to claim of deduction u/s 80IA. The assessee has furnished all the items called for by the Assessing Officer and after considering the material filed by the assessee, the Assessing Officer allowed the claim of the assessee u/s 80IA of the Act. Since the assessee has established infrastructure facility, rent received from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal was pending before the CIT(A) on the date of reopening of assessment. Placing reliance on the judgment of Punjab & Haryana High Court in the case of Venus Industrial Corporation vs ACIT, 236 ITR 742, and the judgment of the Bombay High Court in Export Credit Guarantee Corporation of India Ltd vs Addl. CIT, 350 ITR 407, the ld. DR submitted that the Assessing Officer has rightly reopened the assessment. 16. Now coming to the merit of the addition made by the Assessing Officer, the first issue is with regard to claim of deduction u/s 80IA in respect of interest income. 17. We heard Shri R. Vijayaraghavan, ld. Counsel and Shri Pathlavath Peerya, ld. DR. 18. It is fairly conceded by the ld. Counsel and the ld. DR that the interest in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he earlier assessment year found that the assessee is not eligible for deduction u/s 80IA of the Act. In view of the above, for the year under consideration also, the assessee is not eligible for deduction u/s 80IA in respect of interest income. 23. Now coming to other income other than interest income, this Tribunal in assessee's own case in I.T.A.No.2123/Mds/2011 dated 2.4.2013 found that the assessee is eligible for deduction u/s 80IA of the Act in respect of rental income, other than other income and interest income. In view of the above, this Tribunal is of the considered opinion that the assessee is eligible for deduction u/s 80IA of the Act in respect of rental income other than interest and other income. 24. The next ground of app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd depreciation while computing deduction u/s 80IA of the Act. 29. This Tribunal is of the considered opinion that in view of the decision on merit, the alternative ground does not survive for adjudication. Therefore, the alternative ground raised by the assessee is rejected. 30. Now coming to Revenue's appeals I.T.A.Nos.1554, 1555 & 1556/Mds/2014, the only issue arises for consideration is computation of eligible profit for deduction u/s 80IA in respect of lease rent received for office space and infrastructure facility, Revenue sharing income, rent from auditorium and rent from modules lessees. 31. We heard Shri Pathlavath Peerya, ld. DR and Shri R.Vijayaraghavan, ld. Counsel for the assessee. 32. The only contention of the ld. DR is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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