INCOME TAX ACT, 1961

Section 80-IA

Deduction under section 80-IA - Income from Industrial Park - Income derived from letting out of property to tenant for the purpose of running technological park was income from business and not income from house property -

Revenue had filed the present appeal aggrieved by order of Tribunal dismissing the appeal of Revenue holding that except the interest income and other income, rest of the incomes were assessable under the head “Income from business” for the purpose of computing deduction under section 80-IA and to treat interest income and other income only under the head “income from other sources” and allow deduction under section 80-IA on rest of the incomes i.e., rent from premises, operation and maintenance income etc. Held: The burden of the argument for the Revenue, perhaps emanated from only the name of company, forgetting that the main business activity of the company from its motor business had been diversified into developing a special kinds of property and earning lease rental income as its main business income. By no stretch of imagination, could a software park developed with the special facilities and amenities for software companies, be earning rental income as income from house property. Therefore, deduction under section 80-IA could not be disallowed to assessee.

Followed:PCIT v. Khivraj Motors Pvt. Ltd. [TCA.Nos.314 and 315 of 2017 dated 27-7-2020] : 2020 TaxPub(DT) 3050 (Mad-HC) M/s. PSTS Heavy Lift and Shift Ltd. v. DCIT [Tax Case Appeal Nos. 2193 to 2195 of 2008 & 979 of 2009] : 2020 TaxPub(DT) 0824 (Mad-HC) CIT v. Elnet Technologies Limited (2012) 213 Taxman 129 (Mad) : 2013 TaxPub(DT) 0684 (Mad-HC) M/s. TIDEL Park Ltd. v. ACIT [ITA No. 2104/Mds/2011, ITA No. 2122/Mds/2011 & C.O.No.18/Mds/2012 (in ITA No.2122/Mds/2011), dt. 27-9-2013] ACIT v. Ticel Bio Park Limited [I.T.A. No.2123/Mds/2011, dt. 2-4-2013]

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2008-09

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