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2014 (8) TMI 904 - HC - Income TaxExemption u/s 10(23C)(vi) – Held that:- The interest was paid on the basis of the resolution passed by the Executive Committee of the assessee - There was no discrimination between the creditors - all the creditors got the interest @ 18% - relying upon C.I.T. Vs. Amrit Soap Company 2008 (11) TMI 71 - PUNJAB AND HARYANA HIGH COURT] - the interest @ 18% to close relative and associated persons is covered under Section-40A (2)(b) of the Act - Expediency, legitimacy and the business need will have to be examined from the assessee's point of view and not certainly, from the Department's view – Decided against Revenue. Estimation after obtaining report from DVO – Held that:- The assessee has constructed the building. The AO did not accept the value shown by the assessee and referred the matter to the DVO, but without rejecting the books of account - The Tribunal held that without rejecting the books of account, addition cannot be made on the basis of D.V.O's report - books of accounts were maintained properly and were never rejected - the order of the Tribunal is upheld – Decided against Revenue. Depreciation on books – Held that:- The assessee is maintaining a library for lending the books on charges - As per Schedule to Income Tax Rules, 100% depreciation on books is permissible - the depreciation @ 100% was rightly allowed by the appellate authorities, as per the Income Tax Rules – Decided against Revenue.
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