Case Law Details
DCIT Vs JWC Logistics Park P. Ltd. (ITAT Mumbai)
Deduction u/s 80IA available towards FDR interest, scrap sales, EDI charges and profit from operation of ICD
ITAT Mumbai held that deduction u/s 80IA of the Income Tax Act duly available towards FDR interest, scrap sales and EDI charges and on account profit earned from the operation of Inland container Depot (ICD).
Facts- During the course of assessment proceedings the AO found that the assessee company had claimed deduction of Rs. 12,97,713/- and Rs.4,65,58,515/-, totaling to Rs.4,78,56,228/- u/s. 80IA(4) of the Act on account of FDR interest, scrap sales and EDI charges and on account profit earned from the operation of Inland container Depot (ICD). The AO was of the view that for claiming such deduction u/s. 80IA(4), the assessee is to carry on the business of developing/operating/maintaining in infrastructure facility and he held that all the conditions u/s. 80IA of the Act should be fulfilled to avail such deduction. As the conditions for availing such benefit of deduction u/s. 80IA(4) of the Act are not fulfilled, assessee’s s claim of deduction of Rs.4,78,56,228/- is not allowed and as such added the same to the total income/loss of assessee vide assessment order dt. 28-03-2014 passed u/s. 143(3) of the Act for the A.Y 2010-11.
CIT(A) held that the ‘other income’ of Rs. 12,97,713/- & Rs. 4,65,58,515/- consisting of interest on margin money for BG/Bond, scrap sales and EDI charges and profits earned from operation of container depot are eligible for deduction u/s. 80IA(4) of the Act.
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