Case summary

GVK Jaipur Expressway Pvt Ltd vs Dy. CIT

View Case

The assessee has taken this common ground of appeal in its appeal/cross objection filed for the assessment years 2010-11 to 2015-16 challenging the action of the ld. CIT(A) in upholding the disallowance of deduction u/s 80IA on the interest receipts by treating the same as income from other sources as against income from business activities.

It was submitted that the Assessing Officer has disallowed the interest receipts while working out deduction u/s 80IA and the said action of the Assessing Officer has resulted into double addition of the same amount and the assessee cannot be penalized for such inadvertent error where it has suo moto disallowed the interest receipts. CIT/DR submitted that it is a settled position that interest receipts should not qualify for deduction u/s 80IA and the same is the consistent position which has been adopted by the Assessing Officer for all these years.

Where the assessee has suo moto disallowed the interest receipt, both the parties are in agreement that such interest receipts should not qualify for deduction under section 80IA and the matter is no more in dispute. Jaipur ITAT allowed the modification in the ground of appeal so taken by the assessee company and the matter is set aside to the file of the Assessing Officer to carry out the necessary verification and where on such verification, it is so found that the assessee has suo moto disallowed the interest receipts while working out the deduction, no further addition is sustainable in the eyes of law and the addition made by the Assessing Officer is hereby directed to be deleted. In the result, the existing grounds of appeal are treated as withdrawn as per request of the assessee and modified ground of the appeal for the respective assessment years i.e, A.Y 2010-11 to A.Y 2015-16 so taken by the assessee are admitted.

Share your thoughts using the comment section below

%d bloggers like this: