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TMI Blog2018 (4) TMI 1810X X X X Extracts X X X X X X X X Extracts X X X X ..... d thus, no interference is warranted. - Decided against assessee. Deduction under section 80IA - lease rent income received from letting out modules of STP to various lessees - AO held that the provisions of section 80IA(4)(iii) of the Act are applicable only for the profits derived out of development and sale of built up space and not applicable for rented property - HELD THAT:- As in assessee s own case for the assessment year 2008-09[ 2013 (9) TMI 1256 - ITAT CHENNAI] by following the decision of the Hon ble Madras High Court in the case of CIT v. Elnet Technologies[ 2012 (11) TMI 671 - MADRAS HIGH COURT] the Coordinate Benches of the Tribunal held that the lease rent income from modules/built up space of the Industrial Park is assessable under the head income from business and such income is eligible for deduction under section 80IA - DR could not controvert the above findings of the Tribunal and brought on record any higher Court decision having modified or reversed the above findings of the Tribunal as well as the decision of the Hon ble Madras High Court - Decided against revenue. Disallowance u/s 14A - CIT- A restricted addition to the extent of dividend incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the above stated interest incomes and various other incomes are not eligible for deduction under section 80IA of the Act in view of the decision of the Hon ble Supreme Court in the case of Liberty India v. CIT 317 ITR 218. 3. On appeal, by following the decision of the Tribunal in assessee s own case for the assessment year 2008-09 and 2010-11, the ld. CIT(A) directed the Assessing Officer to follow the decision of the Tribunal, wherein, the Tribunal has held to treat the interest income and other income under the head income from other sources . 4. On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee vehemently argued that the interest on deposits made from internal accrual is only income from the business of operating and maintenance of STPI and hence such income should be allowed as deduction under section 80IA of the Act. With regard to disallowance of other income, it was the submission that the entire activities of the assessee in developing, operating, maintaining the Industrial Park should be treated as one integrated activity and income therefrom is business income and thus, the expenses should be fully allowed aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from letting out modules of STP to various lessees would constitute income from business and was eligible for deduction under section 80IA of the Act. 7.1 In the assessment order, after elaborately discussing and distinguishing the provisions of sections, the Assessing Officer held that the provisions of section 80IA(4)(iii) of the Act are applicable only for the profits derived out of development and sale of built up space and not applicable for rented property and accordingly, disallowed the claim of rental income as deduction under section 80IA(4)(iii) of the Act. 7.2 On appeal, by following the decision of the Tribunal in assessee s own case for the assessment years 2008-09 and 2010-11, the ld. CIT(A) directed the Assessing Officer to follow the decision of the Tribunal, wherein, the Tribunal has held to treat the lease rent income from modules/built up space of the Industrial park as assessable under the head income from business and such income is eligible for deduction under section 80IA of the Act. 7.3 Aggrieved, the Revenue is in appeal before the Tribunal for both the assessment years. The ld. DR has submitted that appeal against the order of the Tribunal has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above exempt income. Considering the quantum of investments, by invoking the provisions of section 14A r.w. Rule 8D, the Assessing Officer determined the expenditure component and made disallowance of ₹.21,32,008/- in the assessment year 2011-12 and ₹.36,97,759/- and brought to tax. On appeal, the ld. CIT(A) restricted the disallowance to the extent of exempt income earned by the assessee in both the assessment years by following the decision in the case of Joint Investment Pvt. Ltd. v. CIT 372 ITR 694 (Del). The only argument advanced by the ld. DR is that the Department has preferred SLP before the Hon ble Supreme Court against the order of the Hon ble Delhi High Court and therefore, to keep the issue alive, the order of the ld. CIT(A) should be reversed. However, in the case of Joint Investment Pvt. Ltd. v. CIT (supra), the Hon ble Delhi High Court has observed and the head-notes are as under: Income-Expenditure incurred in relation to income not includible in total income-Disallowance-Assessee was engaged in diverse investment activities and in the course of its business derived income from rent, sale of investments, dividend and interest-For AY 2009-10, ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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