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2012 (5) TMI 201 - ITAT INDOREChallenge to notice u/s 143(2) on CA of the assessee - held that:- the CA representing the assessee received the notice and thereafter the assessee ratified the notice by filing various submissions. Thus, these estoppels from challenging such service of notice as held in the case of Y. Rajendra, Dy. CIT v. Khoday Eshwarsa & Sons (2004 -TMI - 10101 - KARNATAKA High Court). Interest Expenditure u/s 36(1)(iii) - held that:- even if the assessee has capitalized its interest expenditure in the books of account, the same is eligible for claim of deduction u/s 36(1)(iii) of the Income-tax Act, 1961. Since this is a purely legal claim and entire facts are available on record, the CIT(A) was not justified in not admitting the purely legal ground raised before him for the first time. - matter restored before CIT(A). Netting off of Interest - Interest received and Interest Paid - held that:- view of the decisions in ACG Associate Capsules (P.) Ltd. (2012 -TMI - 210468 - SUPREME COURT OF INDIA) and Shriram Honda Power Equip (2007 -TMI - 2891 - HIGH COURT, DELHI) the Hon'ble High Court held that where the assessee is paying interest expenditure and also in receipt of interest income, net interest income is to be arrived at after excluding the interest expenditure incurred for earning such interest income. - matter remanded back to CIT(A).
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