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2012 (11) TMI 555 - AT - Income TaxDeletion of addition on account of Interest – Held that:- Addition due to Interest paid on purchase of securities by the assessee-company for the broken period as per DTAA be deleted as decided in assesses own case earlier - impugned order is upheld to this extent. This ground is, therefore, not allowed. Advisory fee/Commission - Accrual of Income - Following the decision of court in case of [Kerala Urban Development Finance Corporation Ltd. Versus Commissioner Of Income-Tax ,2002 (12) TMI 18 - KERALA HIGH COURT] Held that:- Income accrued to the assessee at the time of disbursal of loan and hence assessable to tax in the year in which the loan amount was disbursed. Income accrued at that very stage itself and could not have been deferred over the life of loan - CIT(A) was not justified in directing the spread over of the advisory fee over the period of loan - impugned order on this issue is vacated and restore the action taken by the A.O - In the result, the appeal of the assessee is allowed and that of the Revenue is partly allowed. Disallowance of Interest - Assessee in its appeal are similar to those for assessment year 2000-2001 but for change in the amount of Rs. 2,03,34,257 being the interest disallowed u/s 40(a)(i) and also charged to tax under Article 11 of the DTAA. Both the sides are in agreement that the facts and circumstances of the instant year are mutatis mutandis similar to those of the preceding year – in favour of assessee. Advisory Fee - Held that:- In reversing the order of the CIT(A) and restoring the action of the AO in bringing the entire amount to tax in the preceding year, the amount already voluntarily offered by the assessee for taxation in the current year, on the strength of its treatment as deferred income in earlier year, cannot be taxed once again, if the entire amount has been taxed in a year, then no part of the same can be charged to tax in the subsequent year - As the necessary facts in this regard are not available on record impugned order on this issue is set aside and remit the matter to the file of A.O. for examining as to whether the amount of Rs. 24.36 lakh taxed in the current year is part of the amount of advisory fee taxed in assessment year 2000-2001 - partly allowed for statistical purposes.
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