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2012 (7) TMI 60 - AT - Income TaxDisallowance u/s.14A - CIT(A)deleting the disallowance made by AO - Held that:- As assessee had raised the loan up to 1997-98 and majority of investments have been made before 1997-98 claiming deduction u/s.80M - as there is no dispute to the fact that assessee is having the non-interest bearing funds the nexus between borrowed funds and investments can be said to be established only where it is shown that interest free funds are not available with the assessee - as there is no nexus of such kind proved by the AO, thus as per the past history where the Department itself has been taking the view that no expenses including the interest has been attributed to dividend for computing deduction u/s.80M the disallowance made by the AO is to be deleted - in favour of assessee. Rejection of revised return filed - Held that:- If the assessee discovers any omission or any wrong statement in the return of income, he may furnish revised return as prescribed u/s. 139(5) provided the original return having been furnished by the assessee u/s.139(1)- as before the expiry of the limitation to file the revised return, the assessee had discovered that no income had accrued to the assessee and accordingly the return had been revised for the reasons of withdrawal of the scheme by the Government, the action of the assessee in revising the return on principle of real income cannot be said to be false or against the provisions contained in Section 139(5) - in favour of assessee Considering the service charges as income of the year under consideration - Held that:- The matter is restored back to the file of AO to decide the taxability of income and exclusion of service charges, in the assessment year 2004-06 in view of decision regarding revised return - in favour of assessee.
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