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TMI Blog2012 (8) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... ommon grounds raised in both the appeals and the same are extracted from AY 2006-07, as under:- "1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in denying the benef it of deduction u/s 80IA of the Act in respect of rental income earned from Ascendas Property Management Services Ltd. ('Ascendas'). 2. Without prejudice to the above, on the facts and circumstances of the case, the ld CIT(A) has erred in not admitting the additional ground of appeal, of excluding the corresponding expenditure incurred towards earning rental income earned from Ascendas, while computing deduction u/s 80IA of the Act." 3. To dispose of these appeals, we refer to the facts from AY 2006-07. 4. Briefly the facts of the case are tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 to March, 2006 @ Rs. 1,32,800/- per month and received a total amount of Rs. 13,28,000/- for 10 months period, for which the said company occupied the premises. In reply to the queries made by the Assessing Officer, the assessee explained that M/s Ascendas is the managing agency for maintenance and operation of industrial park and has set up its office in the Mariner Block. The Assessing Officer after making physical enquiry through the Inspector, came to a conclusion that the premises, which M/s Ascendas has occupied, and from which the assessee had received rent, was in a separate stand alone building, which did not form part of the structure called Mariner Block. The Assessing Officer further came to the conclusion that the administrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter and also the notification of the CBDT. He, therefore, held that the income derived from the administrative building cannot be claimed as deduction u/s 80IA(4)(iii) of the Act. Still aggrieved, the assessee is in appeal before us. 6. The learned counsel for the assessee submitted before us that the building plan of the Mariner Block was approved by the HUDA in the year 1998-99 and from the approved plan, it can be seen that the administrative building is part of the Mariner Block. It was contended that in the Communication Letter forwarded to the Department of Industrial Policy and Project (DIPP), the assessee has clearly mentioned that the administrative building is part of the common facilities. In this regard, the assessee invite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e area and it is not disputed that the assessee has utilized 100% allocable area for industrial use. The learned counsel for the assessee further contended that the assessee entered into a contract with M/s Ascendas in order to ensure World class services to the tenants of industrial parks. To facilitate this, M/s Ascendas was given space in the administrative building on consideration of rent. Charging of rent for the space provided in the administrative building, therefore, is eligible for deduction u/s 80IA(4)(iii) of the Act. The learned counsel for the assessee contended that neither section 80IA(4)(iii) nor notification issued by the CBDT provides that the deduction u/s 80IA(4)(iii) should be restricted to income derived from the allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Phase II, Orion Block in Phase III, and Capella Block in Phase IV. Mariner was the first project off the block and during the relevant assessment years under dispute only Mariner Block and Auriga Block have been completed. The building plan of Mariner Industrial Park was approved by HUDA in the year 1998-99. A copy of the building plan, which is at page 44 of the paper book reveals that Mariner Industrial Park has 5 buildings being B1, B2, B3, B4 and B5 and one administrative building. This fact also finds support from the letter dated 02/08/1999 of the assessee to the Department of Industrial Policy and Promotion, Ministry of Industry, Govt. of India, a copy of which is placed at page 51 of the paper book. In this letter, the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecifies that allocable area will mean the net area available for industrial, commercial or residential purpose but will exclude area used for common facilities. Clause 4 of the approval letter provides that infrastructure development shall include expenditure on common facilities. In terms with the approval by the DIPP, the CBDT also issued a notification on 29/12/2005 notifying the assessee as an industrial park for the purpose of section 80IA(4)(iii) of the Act. Similar to clause 4 of the approval letter of DIPP, the CBDT notification also provided that infrastructure development shall include common facilities for common use for industrial activity. As is clear from the letter dt. 02/08/1999 of the assessee, administrative building is p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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