TMI Blog2022 (10) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... t the income from car parking rental would squarely qualify for deduction under Section 80IAB of the Act. Ground of the appeal of the assessee is allowed. Deduction u/s 80IAB on sale of garbage and oil waste - HELD THAT:- We take note of the similar contentions on behalf of the assessee that generation of waste oil and garbage are inextricably connected to the maintenance and running of a SEZ and thus any profit derived from sale of such scrap will be eligible for deduction under Section 80IAB of the Act. A reference made in this regard in the case of ACIT vs. Zydus Infrastructure [ 2016 (8) TMI 696 - ITAT AHMEDABAD] has been taken note of. We thus agree with the plea of the assessee on this score too. Ground No.2 of the Assessee is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax (Appeals)- XVII, New Delhi [ CIT(A) in short] dated 31.03.2015 arising from assessment order dated 15.03.2013 passed by the Assessing Officer (AO) under Section 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2010-11. 2. As per Ground No.1, the assessee has challenged the denial of deduction under Section 80IAB in respect of income received in the nature of car parking rental amounting to Rs.1,28,94,927/- 2.1 The assessee-company is engaged in the business of real estate development and maintaining/operating a SEZ in Gurgaon developed by it. The assessee inter alia claimed deduction under Section 80IAB on the profits derived by it from the business of developing SEZ. The Assessing Officer in the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by Government of India, Ministry of Commerce and Industry, Department of Commerce was adverted and was submitted that income by way of car parking is part of authorized activities as per the guidelines. Another reference was made to communication No. F 2/115/2005-EPZ Government of India, Ministry of Commerce and Industry, Department of Commerce (SEZ Section) dated 30th January, 2008 and was asserted that car parking has been included as part of authorized operations in SEZ. It is thus contended that car parking cannot be separated from the main business of SEZ and hence there is no justifiable reason to deny benefits on income from car parking rental in this backdrop. 4. We have carefully examined the issue and perused the orders of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses and all other expenses claimed are directly attributable to SEZ operations and has no relation to the exempt income earned by way of dividend on mutual fund investment (ii) where suo motu disallowance has been made, the Assessing Officer is required to form satisfaction in terms of Section 14A of the Act for higher disallowance which has not been made and thus the formula provided for quantification of disallowance under Rule 8D would not automatically apply. 9. We find merit in the plea of the assessee that the disallowance cannot exceed the actual expenditure incurred in relation to the earning of the exempt income. In the instant case, no direct expenses has been incurred and the disallowance has been carried out under Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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