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2015 (5) TMI 1034 - AT - Income TaxAddition u/s. 14A r.w. Rule 8D in respect of dividend income received by the assessee - Held that:- In the present case, since the shares were not held as investment and dividend was received by the assessee on the shares held as stock-in-trade in the course of business, there is no question of making disallowance u/s. 14A of the Act. In assessment year 2007-08 the assessee has also raised issue with respect to disallowance of interest. The assessee has paid total interest of ₹ 15,85,460/- on borrowed funds. The Assessing Officer disallowed interest expenditure to the extent of ₹ 6,17,197/- being loans/advances given from interest bearing funds to certain persons for non-business purposes. Before, the Commissioner of Income Tax (Appeals), the assessee gave detailed calculation with respect to total interest paid, utilization of interest bearing funds and the rate of interest. The Commissioner of Income Tax (Appeals) partly accepted the contentions of the assessee and reduced the disallowance of interest to ₹ 1,23,389/-. The Commissioner of Income Tax (Appeals) also accepted the rate of interest admitted by the assessee @ 7.58%. The grievance of the assessee is that the Commissioner of Income Tax (Appeals) has not properly appreciated the detailed interest calculations. We observe that the detailed computation of interest which was filed by the assessee before the Commissioner of Income Tax (Appeals) was not available before the Assessing Officer. In our considered opinion this issue needs a revisit to the Assessing Officer. Accordingly, the file is remitted back to Assessing Officer with a direction to decide this issue afresh after taking into consideration the interest computation filed by the assessee and information available in the books of account. This ground of appeal of the assessee is allowed for the statistical purpose
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