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2013 (3) TMI 169 - AT - Income TaxUnrecognised gratuity fund - Deduction u/s 37(1) - held that:- the Group Gratuity Scheme was not recognised by the Commissioner of Income-tax. This fact is not in dispute. - the amount paid towards an unapproved gratuity fund can be deducted under sec. 37 of the I.T. Act, though not under sec. 36(1)(v). Deduction of interest - investments made and loans advanced to its subsidiary - held that:- the assessee used its own non interest bearing funds and there is no cost to the assessee and it is a business decision taken by the assessee to make an investment in subsidiary company and that even if it is resulted in no income to the assessee, the notional interest cannot be disallowed on the reason that the assessee should have used its non interest bearing funds for the purpose of its own business purpose instead using borrowed funds for its business. - Decided in favor of assessee.
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