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TMI Blog2015 (9) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... he head “income from other sources”. Therefore, we direct the Assessing Officer to treat interest income and other income only under the head “income from other sources” and allow deduction under section 80IA on rest of the incomes i.e. rent from premises, operation and maintenance income, revenue sharing income, common facilities such as rent from auditorium and rent from others - Decided against revenue. As far as the contention of the assessee that interest on debtors should be considered as income from business in view of the decision of jurisdictional High Court in Madras Motors Ltd.(2002 (3) TMI 10 - MADRAS High Court), we find that the decision is distinguishable on facts. In that decision, it was the case of the assessee where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee contends that Commissioner of Income Tax (Appeals) erred in holding that assessee is not entitled to deduction under section 80IA of the Act in respect of interest income and treating it under the head other sources as against the claim of the assessee as income from business . 5. Counsel for the assessee submits that this issue is also covered by the co-ordinate Bench decision in assessee s own case wherein the Tribunal decided the issue against the assessee holding that interest and other income should be assessed under the head income from other sources and not eligible for deduction under section 80IA of the Act. Counsel for the assessee submits that out of interest income of ₹ 12,84,98,175/- interest of 38,83,769/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profession eligible for deduction under section 80IA of the Act. While holding so, the Commissioner of Income Tax (Appeals) held as under:- 6.10. I have carefully considered the facts of the case and the submissions of the Id. AR. I have also perused the approval and the notification issued by the Ministry of Industry and CBDT. I have also gone through the decisions relied on by the /\O and AR. Deduction u/s 80lA is available to an assessee for the profits and gains of an undertaking enterprise derived from eligible business. The eligible business in this case is an undertaking which develops, develops operates or maintains operate an industrial park notified by the Central Government in accordance with the scheme framed and notifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial park and other ancillary services to the users. Thus, the appellant has carried out real, substantial, systematic and organized activity. Since the word business is one of wide import and in fiscal statute, it must be construed in a broad rather than a restricted sense (Mazgaon Dock Ltd. Vs. CIT 34 ITR 368 (SC), it would not be improper to recognize the activity of the appellant as a business activity. In case of the appellant the eligible business is development, development operation or maintenance operation of an industrial park . The business of industrial park of the appellant, TIDEL Park Ltd, is not similar to that of an industrial undertaking which produces articles or things which can be sold in the market and profit can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has developed industrial park for information technology/software technology and since the industrial park was notified by the Central Government under clause (iii) of sub-section (4) of section 801A, which is an eligible business for the purpose of Section 80lA(1), I am of the considered opinion that the lease rent received from providing built-up space (module) for industrial use to various lessees is income from business eligible for deduction u/s 801A of the Act. Accordingly, I direct the Assessing Officer to assess the lease rent income of the industrial park under the head profits and gains of business or profession and allow deduction u/s 80lA for such profits. 10. We also find that an identical issue came up before the Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computing deduction under section 80IA(4) of the Act. Therefore, we direct the Assessing Officer to treat interest income and other income only under the head income from other sources and allow deduction under section 80IA on rest of the incomes i.e. rent from premises, operation and maintenance income, revenue sharing income, common facilities such as rent from auditorium and rent from others. 8. Respectfully following the said decision, we uphold the order of the Commissioner of Income Tax (Appeals). 9. As far as the contention of the assessee that interest on debtors should be considered as income from business in view of the decision of jurisdictional High Court in Madras Motors Ltd. (supra), we find that the decision is disti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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