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2019 (8) TMI 500 - ITAT JAIPURRectification u/ 154 - Interest on mobilization advance by upholding the same as "Mistake apparent from record" - eligibility u/s 80IA - HELD THAT:- When the issue of allowability of the claim of interest paid to RVNL is a debatable issue on which a decision is required on the basis of the relevant facts of the case then it is not an apparent mistake on record which is obvious and patent that can be rectified without the process of long drawn reasoning. Accordingly, we hold that the order passed by the AO U/s 154 of the Act dated 29.12.2015 is beyond the scope and jurisdiction of the AO and consequently the same is liable to be quashed. Allowability of Interest on mobilization advance - HELD THAT:- AO has not disputed the fact that the said amount was received as mobilization advance only for the execution of work contract in question and M/s KIEL the lead partner responsible for the execution of the work and incurring all the expenditure on behalf of the joint venture has actually incurred the expenditure and utilized the said amount only for execution of the work under the joint venture. Once the said amount was not utilized by M/s KIEL otherwise than the execution of the contract work of the assessee joint venture then the interest paid on the mobilization advance is an allowable expenditure in the hand of the joint venture. It is also not disputed that KIEL is also paying tax @ 30% though the AO pointed out that the said interest was not claimed by the KIEL to maximize the claim of deduction U/s 80IA. We find that the contract work received by the KIEL are not eligible for deduction U/s 80IA and only the wind mill power generation was eligible U/s 80IA. Thus, the said reasoning of the AO is contrary to the facts while disallowing the claim of interest. Hence, in view of the above facts and circumstances of the case we hold that even on merits the claim of the interest on paid to RVNL on mobilization advance is allowable expenditure of the assessee joint venture.
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