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2023 (3) TMI 1350 - ITAT AHMEDABADDeduction u/s 80IB - disallowance of interest income derived from assessee’s business advances and derived on fixed deposits placed by the assessee for availing credit facility, performance guarantees, bank guarantees, bid bonds etc. exclusively for the purpose of business in computing eligible profit and gains - HELD THAT:- Interest income related to FD interest, interest from customer’s receipts and interest income from business advances, the said issue has been allowed by the Tribunal in A.Ys. 2008-09, 2009-10 & 2010-11. The facts are identical in the present assessment year as well. DR could not point out any distinguishing facts and the decisions relied upon by the Ld. DR are on different facts altogether. As regards scrap sale income and currency swap income, the same is also identical as referred by the assessee to various decisions before us and no distinguishing facts were pointed out by the Ld. DR. Hence, ground no.1 to 3 of assessee’s appeal is allowed. Disallowance u/s 14A - HELD THAT:- It is pertinent to note that disallowance under Section 14A of the Act, the Assessing Officer has given satisfaction but the fact remains that own funds are more than investments and the same was utilised while making investments. From the perusal of records it appears that the alternate argument of the assessee that only those investments which are yielded from sales income during the year should be allowed as per the decision of Delhi Tribunal in case Vireet (2017 (6) TMI 1124 - ITAT DELHI] appears to be correct. Therefore, alternate argument of the assessee is allowed and ground no.4 is partly allowed. Disallowance of depreciation on right to use lease hold land - HELD THAT:- It is pertinent to note that the recognition of the right to use lease hold land as intangible asset as per the statement of account and the same was not disputed by the Department at any stage. Thus, the claim of depreciation was correctly made and the same should have been taken into account by the Assessing Officer as well as CIT(A). Thus, ground no.5 and ground no.5.1 are allowed. Amortisation expenditure claimed in relation to leasehold land - HELD THAT:- It is pertinent to note that the amortisation expenses are not available to the assessee as it was part of lease rent payment and, therefore, the plea of the assessee that eligible profit for computation of deduction under Section 80IAB should increase is acceptable. Hence, ground nos.6 and ground no.6.1 are allowed. Addition in respect of retention money from customers - HELD THAT:- It is pertinent to note that, retention money from customers if added, the eligible profit for computation of deduction under Section 80IAB should increase, this contention is on the legal principle and it appears to be correct statement. Thus, Ground no.7 is allowed. Deduction in respect donation u/s 80G - CIT(A) has observed that the said donations were related to the business income and hence rightly claimed deduction under Section 80IAB - CIT(A) has given detailed finding and there is no need to interfere with the same. Hence, ground no.7 of the Revenue’s appeal is dismissed.
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