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2013 (4) TMI 833 - AT - Income TaxApplication of 8% net profit on the gross receipt - CIT(A) holding the net profit at the rate of 8% be applied on the receipt after the deduction of trade tax and royalty etc. - Held that:- On interest on FDRs, the ld. CIT(A) specifically noted, the addition is made by the Assessing Officer on this head without giving any opportunity of hearing to the assessee. Therefore, on this reason itself, the order of the Assessing Officer is liable to be set aside. Further, the ld. CIT(A) found that FDRS are purchased for security purpose for obtaining the contracts which is connected with the business activities of the assessee. Therefore, set off was allowed out of interest. Since it was a negative figure of interest, therefore, it was considered not to be added to the income of the assessee. On considering of the above facts, particularly when no opportunity has been given by the Assessing Officer before making this addition, the ld. CIT(A) was justified in deleting the addition on account of interest. The ld. CIT(A) has passed the speaking order on both the grounds. Therefore, there is no violation of law. Accordingly, the appeal of the Revenue has no merit and is dismissed.
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