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2018 (9) TMI 604 - GUJARAT HIGH COURTAddition on account of interest u/s.36(i)(iii) - Held that:- While deleting addition Tribunal relied on the judgment of the Supreme Court in the case of S. A. Builders [2006 (12) TMI 82 - SUPREME COURT]. The Tribunal noted that undisputedly the loans and advances were given by the assessee to the subsidiary companies for the purpose of their business and there was no dispute that such advances were utilized by the subsidiaries for their businesses. No question of law in this regard therefore arises. Claim of depreciation on the leased asset - AO was of the opinion that the transaction itself was not genuine - Tribunal allowed such depreciation on the ground that the transaction was genuine - Held that:- The assessee had demonstrated ownership of the assets, genuineness of the lease transaction, user of leased asset for the purpose of the business of earing lease rental. Such lease rental was accepted by the Assessing Officer and taxed the same. Quite apart from such finding of the Tribunal regarding genuineness of the transaction being a finding of fact what emerges further is that the Assessing Officer had accepted lease rental as income of the assessee and taxed the same. It was on this ground that the Tribunal was of the opinion that the depreciation of leased asset cannot be denied. This question therefore also does not require consideration. Disallowance u/s 14(A) - Held that:- Tribunal had noted that the assessee had sufficient interest free funds for making investment in assets earning tax free income. It was in this background that the Tribunal deleted the disallownace but apportioned ₹ 2 lacs for administrative expenses. Here also no question of law arises therefore, tax appeal is dismissed.
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