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2011 (3) TMI 934 - GUJARAT HIGH COURTReopening - Disallowance - The petitioner filed its return of income on October 31, 1994, for the assessment year 1994-95 along with computation of income accompanied by the audit report and relevant annexures as required under section 44AB of the Act - it is apparent that the assessment of the petitioner for the assessment year 1994-95 is sought to be reopened by issuing the impugned notice on the ground that the petitioner had paid usance interest amounting to Rs. 14,32,469 on purchase of ships and had not complied with the provisions of section 40(a)(i) of the Act - Explanation 2 to section 10(15)(iv)(c) of the Act, which has been made retrospectively effective from April 1, 1962, usance interest payable outside India by an undertaking engaged in the business of ship-breaking in respect of purchase of a ship from outside India is deemed to be interest payable on debt incurred in a foreign country in respect of the purchase outside India and as such the same cannot be included while computing the total income of the petitioner - Decided in favour of the assessee
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