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2012 (8) TMI 266 - AT - Income TaxInterest on borrowed funds - dis-allowance on ground that same has been used to provide interest free loans and advances - assessee contended that interest free advances were made out of mixed funds consisting of borrowed and own funds - Held that:- When mixed pool of funds is utilised and no specific borrowed funds are used for investment and sufficient non-interest bearing funds are available, presumption is that investment is made out of own non-interest bearing funds. Deletion of dis-allowance upheld. See CIT vs Reliance Utilities and Power Ltd. (2009 (1) TMI 4 - HIGH COURT BOMBAY ) - Decided in favor of assessee. Employees’ contribution to PF and ESIC - dis-allowance - belated payment - Held that:- If the employee’s share of contribution is paid before the due date of filing of the return u/s 139(1), then no dis-allowance can be made. See CIT V/s Alom Extrusions Ltd (2009 (11) TMI 27 - SUPREME COURT) - Decided in favor of assessee. Dis-allowance u/s 40(a)(ia) - belated payment of TDS - Held that:- Amendment made u/s 40(a)(ia) requires to be treated with retrospective operation. Hence, since TDS has been deposited before the due date of filing of the return of income u/s 139(1), therefore, we delete the addition made u/s 40(a)(ia) - Decided in favor of assessee.
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