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2014 (4) TMI 1214 - AT - Income TaxCarry forward of short-term capital loss - assessee had not claimed any such loss in the return of income - Held that:- It is not disputed by the Revenue that the loss arose to the assessee on account of surrender of single premium equity linked insurance policies, which were used for making investments in Mutual Fund. Revenue has also not disputed the claim of assessee that resulting loss on account of such surrender of single premium insurance policy could be treated as short-term capital loss. It’s only grievance is that assessee had not made such a claim before the ld. CIT(Appeals). It is true that assessee had not made the claim in her return of income. However, it is also a fact that assessee had endeavoured to set off the loss against her interest income, which was not allowed by the Assessing Officer. Hence, it is not that there was no claim of loss at all. We are, therefore, of the view that ld. CIT(Appeals) acted well within his powers, when he directed the Assessing Officer to allow the carry forward of short-term capital loss - Decided against revenue Disallowance of interest - Held that:- The profits were sufficient to meet the advance tax liability and the profits were deposited in the overdraft account of the assessee and in such a case it should be presumed that the taxes were paid out of the profits of the year and not out of the overdraft account for the running of the business.CIT(Appeals) was justified in allowing the interest paid on loans to be deducted from the interest earned. - Decided against revenue
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