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2015 (2) TMI 1122 - AT - Income TaxDisallowance of proportionate interest under section 36(1)(iii) on account of non-business purposes - Held that:- Since in the instant case the own capital and interest free funds are more than the interest free advances given, therefore, following the decision of the Hon’ble Bombay High court in the case of Reliance Utilities and Power Ltd. (2009 (1) TMI 4 - BOMBAY HIGH COURT ) we are of the considered opinion that no disallowance u/s.36(1)(iii) is called for. - Decided in favour of assessee Enhancement of income - Held that:- CIT(A) has no power to enhance the income of the assessee by introducing a new source of income which had not been considered by the AO. Addition, if any, on that account can be made by taking recourse into provisions of section 147/148 and section 263. We accordingly hold that both factually as well as legally the Ld.CIT(A) is not justified in enhancing the income of the assessee by ₹ 25 lakhs. We accordingly set aside the order of the CIT(A) on this issue and direct the AO to delete the addition. - Decided in favour of assessee.
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