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2010 (11) TMI 767 - ITAT, AHMEDABADDisallowance of Deduction u/s 80IB - Held that:- Once interest income is held to be assessable under the head 'income from other sources' then it cannot be as such treated as 'income from business' and, therefore, it will not be available for deduction u/s 80IA - Similar view was taken in Nahar Exports Ltd. vs. CIT [2006 (7) TMI 110 - PUNJAB AND HARYANA HIGH COURT] - However, once interest income is assessed u/s 56 the expenditures admissible u/s 57(iii) being expenditure incurred wholly and exclusively for the purpose of earning interest income except capital expenditure can be allowed as deduction - Decided in favour of assessee. Telephone expenses - The AO considering the personal use of telephone and mobile phone by the partners disallowed one fifth of the expenditure - The learned CIT(A) confirmed the addition - Held that:- On consideration of the above facts and the nature of business of the assessee, held that disallowance is excessive in nature - The same is restricted to Rs.4,000/- in all as against addition of Rs.8,595/ - Thus, appeal of the assessee is partly allowed.
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