Case Law Details
Navas M. Meeran Vs ACIT (ITAT Cochin)
Conclusion: Lease rent received by assessee by letting out the industrial undertaking was not having any direct connection with the manufacture or production of an article or thing by assessee and the same could not be considered as business income eligible for deduction u/s. 80IB.
Held: Assessee had received lease rent by leasing/renting of factory and one building and claimed it as income from business and on the profit, assessee claimed deduction u/s 80IB. AO was of the opinion that since assessee was not actually involved in manufacturing or production of an article or thing so as to claim deduction u/s. 80IB, the claim of the assessee was rejected. In the present case, assessee leased out the entire industrial undertaking to another company for the business of manufacturing and production. There were no payments made to the lessee by the present assessee (lessor) for making available those components used as accessories for manufacturing or production of its products. Lease rent received by assessee by letting out the industrial undertaking was not having any direct connection with the manufacture or production of an article or thing by assessee and the same could not be considered as business income eligible for deduction u/s. 80IB.
FULL TEXT OF THE ITAT JUDGMENT
These appeals filed by the assessee are directed against separate orders of the CIT(A)-I, Kochi and pertain to the assessment years 2005-06 and 2006-07.
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