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2015 (9) TMI 486 - ITAT CHENNAIInterest disallowance made u/s 36(1)(iii) - CIT(A) restricted disallowance - Held that:- There is no dispute that the very interest disallowance had been restricted to the extent of diversion of interest bearing funds @ 15% in the past. It has already come on record that the ‘tribunal’ has also decided this ground in assessee’s favour to the extent indicated hereinabove. No distinction much less a justifiable one on facts is forthcoming. In these circumstances, we uphold the CIT(A)’s findings and reject the Revenue’s ground. CIT(Appeals) correctly restricts the impugned interest disallowance @ 15% of the interest relatable to diversion of interest bearing funds to ₹ 3.25 Crores - Decided against revenue. Addition u/s 28(iv) arising from waiver of principal amount in one time settlement - CIT(A) deleted addition - Held that:- There is no dispute on facts. Undisputedly, purpose of the loan in question is acquisition of capital assets only. The lower appellate order records a finding of fact that one time settlement scheme in question does not give rise to any revenue or trading receipt under Section 28(iv) of the Act in the nature of remission of a corresponding trading liability under Section 41(1) of the Act. It also refers to case law of hon'ble jurisdictional high court In the case of CIT v. Tosha International Ltd. (2008 (9) TMI 31 - HIGH COURT DELHI) and Mahindra & Mahindra Ltd. v. CIT [2003 (1) TMI 71 - BOMBAY High Court ] deciding the very substantial question of law against the Revenue. In the course of hearing, the appellant-Revenue fails to draw any distinction on facts as well as law. Thus, we uphold the finding under challenge. The Revenue’s corresponding ground is dismissed.- Decided against revenue.
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