Deduction u/s. 80-IA(4) allowed on interest from FDRs created as part of financial arrangement for infrastructure project

Kalthia Infra-Con Pvt. Ltd. Vs ITO (ITAT Ahmedabad) ITAT Ahmedabad held that interest income earned from the FDRs, which were created as part of the financing arrangement for the infrastructure project, qualifies as business income derived from the eligible business under Section 80-IA(4) of the Act. Facts- The assessee is a Special Purpose Vehicle (SPV) incorporated for undertaking infrastructure development projects under the Build-Operate-Transfer (BOT) model. For AY 2016-17, the assessee filed a return of income claiming a deduction of Rs.20,93,513/- u/s. 80-IA(4) of the Act. AO disallowed...