ITAT allows Deduction u/s 80 IA(4)(iii) of Income Tax Act on Interest Income derived from Industrial Parks/SEZ [Read Order]

The Delhi bench of the ITAT permitted deduction under Section 80 IA(4)(iii) of the Income Tax Act for interest income from industrial parks and SEZs. Candor Gurgaon One Realty Projects, engaged in SEZ development, sought deduction for income from facilities like car parking and food courts. Despite arguments, the CIT(A) upheld the AO's decision. \r

The appellant, represented by Mr. K.M. Gupta, highlighted fixed deposit interest income of ₹43,64,877, citing CBDT Circular No. 16/2017. The ITAT, comprising Amit Shukla and M. Balaganesh, ruled in favor of the appellant, aligning with CBDT's circular on deduction eligibility for SEZ-derived income. \r

The decision follows previous rulings permitting deductions for related income streams under Section 80 IA.