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2011 (3) TMI 1437 - HC - Income TaxReopening of assessment - usance interest - assessment of the petitioner for the asst. yr. 1994-95 is sought to be reopened by issuing the impugned notice on the ground that the petitioner had paid the usance interest amounting to Rs. 63,18,925 on purchase of ships and had not complied with the provisions of s. 40(a)(i) of the Act – Held that:- by virtue of Expln. 2 to s. 10(15)(iv)(c) of the Act, which has been made retrospectively effective from 1st April, 1962, usance interest payable outside India by an undertaking engaged in the business of ship-breaking in respect of purchase of 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, petition succeeds and accordingly it is allowed - notice issued under s. 148 of the Act quashed.
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