The assessee, a developer of IT Parks and SEZ, claimed deduction u\/s 80-IA not only on lease rental income (undisputedly eligible) but also on interest received on income tax refund arising from excess payment of tax. The Assessing Officer denied deduction, holding that such interest had no nexus with the eligible business. The CIT(A) and ITAT, however, held in assessee\u2019s favour.The High Court upheld the Tribunal\u2019s view. It observed that interest on excess tax paid was integrally connected with the assessee\u2019s business of leasing out premises in IT Parks and SEZ, since the payment and refund of income tax formed part of the same business cycle. The Tribunal had rightly concluded that such income can be said to have been derived from the assessee\u2019s eligible business, and therefore, deduction u\/s 80IA was allowable. Accordingly, no substantial question of law arose, and the Revenue\u2019s appeal was dismissed. (ITA No.1413 of 2016, dt. 10-01-2019) \u00a0\u00a0( AY.2009 10 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S.80IA: Industrial undertakings \u2013 Enterprises engaged in infrastructure development -Income tax refund – Interest on excess payment of tax \u2013 Income derived from eligible business \u2013 Eligible for deduction- No substantial question of law . [ S.260A ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-56609","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eJ3","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=56609"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56609\/revisions"}],"predecessor-version":[{"id":56610,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56609\/revisions\/56610"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=56609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=56609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=56609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}