TMI Blog2016 (2) TMI 1309X X X X Extracts X X X X X X X X Extracts X X X X ..... tion u/s 80IA of the Act. Accordingly, the order of the CIT(A) is confirmed. Deduction in respect of other income - HELD THAT:- Since in assessee s own case for assessment year 2008-09, a co-ordinate Bench of this Tribunal found that other income is not eligible for deduction u/s 80IA of the Act and the CIT(A) has followed the order of this Tribunal, we do not find any reason to interfere with the order of the CIT(A). Accordingly, the same is confirmed. Exclusion of expenditure in respect of income which does not form part of the eligible profit for deduction u/s 80IA - HELD THAT:- What was not excluded in the eligible profit for computation of deduction u/s 80IA is interest received by the assessee from fixed deposits and other i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ANESAN, J. These cross appeals by the assessee and Revenue are directed against the order of the Commissioner of Income-tax (Appeals)-III, Chennai, dated 20.12.2013 and pertains to assessment year 2005-06. 2. First we take up assessee s appeal I.T.A.No. 1233/Mds/2014. The first ground of appeal is with regard to disallowance of deduction claimed by the assessee u/s 80IA of the Act in respect of interest income from deposits. 3. Shri R.Vijayaraghavan, ld. Counsel for the assessee submitted that interest was received from deposits. The very same issue came up before this Tribunal in assessee s own case for assessment year 2008-09 and this Tribunal found that interest income is not eligible for deduction u/s 80IA of the Act. 4. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is confirmed. 10. The next issue is with regard to exclusion of expenditure in respect of income which does not form part of the eligible profit for deduction u/s 80IA of the Act. 11. Shri R.Vijayaraghavan, ld. Counsel for the assessee submitted that if the receipt was not included for computation of deduction u/s 80IA of the Act, the corresponding expenditure has to be excluded. According to the ld. Counsel, the expenditure incurred by the assessee for earning the income which does not form part of the eligible profit for deduction u/s 80IA has to be deducted from profits and gains. 12. On the contrary, Shri Pathlavath Peerya, ld. DR submitted that what was excluded is the interest and other income. The assessee has not claimed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has no control over the funds, therefore, the payment made to the fund created by LIC for the benefit of the employees of the assessee has to be allowed. 16. We heard Shri Pathlavath Peerya, ld. DR also. 17. We have considered the rival submissions on either side and also perused the material available on record. The financial year ended on 31.3.2005. The trust deed was executed only on 2.5.2015. Therefore, as on the date of payment, the trust deed itself is not in existence, therefore, the assessee could not have paid the money to LIC. In the case before the Apex Court in Textool Co. Ltd(supra), the the gratuity fund was established and the only issue was that it was not approved by the competent authority. The annual premium wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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