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TMI Blog2018 (12) TMI 1453X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Accordingly, ground No. 1 raised in the appeal is dismissed. Eligibility of compensation towards sale price of cable for claiming deduction u/s. 80IA - Held that:- A perusal of the terms of the agreement reveal that the interest paid by DOT is imbedded in equated quarterly installments. Thus, the interest received by the assessee towards the compensation for deferred payments for supply of cables to the DOT has direct nexus with the business of the assessee. Thus, it can be safely construed that the compensation received for deferred payments is "derived" from the business activities of the undertaking. Therefore, we are of considered view that the assessee is eligible to claim deduction u/s. 80IA on such interest/compensation compon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 30-03-2010 had remitted both the issues; viz. : i. Disallowance of Guest House Expenses; and ii. Eligibility of compensation towards sale price of cable for claiming deduction u/s. 80IA of the Act. to the file of Assessing Officer for re-adjudication. The Assessing Officer in second round disallowed assessee‟s claim in respect of both the above additions. The assessee was unsuccessful before the Commissioner of Income Tax (Appeals) as well, hence, the present appeal. 3.1 The ld. AR submitted that the assessee had claimed expenditure in respect of guest house with the following details : A) Somerset place Co-operative Society Ltd. a) Income Tax Deprec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax(supra). 3.2 In respect of ground No. 2 the ld. AR submitted that the assessee had claimed compensation of ₹ 18,47,51,188/- for delayed payments from the Department of Telecommunication (DOT).. In the first round the claim of assessee was rejected by Assessing Officer by passing a cryptic order. The Tribunal restored the issue back to the file of Assessing Officer for re-adjudicating the issue by passing a speaking order. In the second round the Assessing Officer disallowed assessee‟s claim on the ground that the compensation received by the assessee from DOT is in the nature of interest income on deferred sales. Hence, the interest income is not eligible for the purpose of computation of deduction u/s. 80IA of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on account of telephone, electricity other expenses Rs.Rs.3,36,216/- for Somerset place Co-operative Society Ltd. and ₹ 47,426/- for Antariksha Housing Complex. The Hon‟ble Supreme Court of India in the case of Britannia Industries Ltd. Vs. Commissioner of Income Tax (supra) in unambiguous term has held : In our view, the intention of the legislature appears to be clear and unambiguous and was intended to exclude the expenses towards rents, repairs and also maintenance of premises/ accommodation used for the purposes of a guest-house of the nature indicated in sub-s. (4) of s. 37. When the language of a statue is clear and unambiguous, the Courts are to interpret the same in its literal sense and not to give it a meanin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it would be relevant to refer to the agreement entered into by the assessee with DOT for supply of underground cables on deferred payment basis. The relevant extract of the agreement specifying the period of payment is reproduced here-in-below : 12.0 PERIOD OF DEFERRED PAYMENT ARRANGEMENT, INTEREST AND OTHER RELATED CHARGES. 12.1 The fixed period suppliers credit for the supplies made under this Agreement shall be 5 (Five) years (computed from the date of completion of entire delivery of PIJF U/G Cables at site ). 12.2 The purchaser shall pay to Supplier in 20 Installments as quarterly-inarrears. An Equated Quarterly Amount (EQA) @ RS.61.50 (Rupees Sixty One and Paisa Fifty Only) per ₹ 1000/- of admitted i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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