M/S. SEAVIEW DEVELOPERS LTD.,NEW DELHI vs. DCIT, CIRCLE-23(2), NEW DELHI

ITA 5188/DEL/2017Status: DisposedITAT Delhi30 September 2025AY 2014-15Bench: the Ld. CIT(A) which was partly allowed vide order dated 27.06.2017.14 pages
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What did the Tribunal hold?

The Tribunal held that income from food and beverage sales within an SEZ is integral to the SEZ business and eligible for deduction under Section 80IAB. It also held that interest paid on delayed TDS is a business expenditure and its addition as income from other sources was incorrect.

What were the facts?

The assessee, engaged in developing commercial real estate in an SEZ, claimed deduction under Section 80IAB for income from food and beverage sales. The AO disallowed this, and the CIT(A) upheld the disallowance. The assessee also incurred interest expenses on delayed TDS payment, which the AO disallowed and then added back as income from other sources.

What were the issues?

Whether income from food and beverage sales in an SEZ is eligible for deduction under Section 80IAB, and whether interest on delayed TDS payment is a disallowable business expense.

Which sections of the Income-tax Act were involved?

Section 80IAB,Section 37(1)

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Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI

Before: SHRI M BALAGANESH & SHRI VIMAL KUMAR

For Appellant: Shri Ravi Sharma, Adv. & Ms. Kashish
For Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Hearing: 07.08.2025Pronounced: 30.09.2025

PER VIMAL KUMAR, JUDICIAL MEMBER:

The appeal of the assessee is against order dated 27.06.2017 of Learned Commissioner of Income Tax (Appeals)-28, New Delhi (hereinafter referred as “the Ld. CIT(A)”) under Section 250(6) of the Income Tax Act, 1961

2 ITA No.5188/Del.2017

(hereinafter referred as “the Act”) arising out of Assessment Order dated 29.12.2016 of the Learned Assessing Officer/Deputy Commissioner of Income Tax, Circle 23(2), New Delhi (hereinafter referred as “the Ld. AO”) under Sections 143(3) Act for assessment year 2014-15.

The order continues below.

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