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2013 (8) TMI 633 - AT - Income TaxDeduction claim u/s 80IB of the Income Tax Act - Karaikal Unit in respect of which the impugned deduction u/s 80IB of the Act is claimed by the assessee for the year under consideration was set up in the year 1996 by EID Parry (India) Ltd. and the same was taken over by the assessee - No deduction u/s 80IB of the Act was claimed by EID Parry (India) Ltd. in respect of the said unit in the initial years and even by the assessee up to the immediately preceding year - Due to the continuing losses suffered by the said unit in the earlier years, no deduction u/s 80IB of the Act was claimed as stated by the assessee and the year under consideration was the first year where there was an occasion to claim such deduction – Held that:- The issue as to whether the said unit is eligible for deduction u/s 80IB of the Act or not is required to be established with reference to the initial year and the onus on this regard is on the assessee to establish by producing the relevant documentary evidence to establish that the eligibility conditions stipulated for claiming the deduction u/s 80IB of the Act were duly satisfied in the initial year - It is also required for the A.O. to point out to the assessee as to what exactly is the documentary evidence required to establish its case if the documentary evidence produced by the assessee is found to be not satisfactory by him – Matter remitted to the file of the A.O. with a direction to decide the same afresh after giving the assessee proper opportunity of being heard. Disallowance made u/s 36(1)(va) on account of deposit of employees contribution to PF/ESTC made beyond the due date – Held that:- Relying upon the decision of Hon'ble Kerala High Court in the case of Commissioner of Income-tax v. South India Corporation Ltd. [1999 (10) TMI 44 - KERALA High Court] and that of Hon'ble Madras High Court in the case of Commissioner of Income-tax v. Shri Ganapathy Mills Company Ltd. [1999 (2) TMI 26 - MADRAS High Court], it was held that due date of payment under the relevant Act is inclusive of the grace period allowed under the said Act – Decided against the Revenue. Explanation to Section 43(1) of the Income Tax Act - Disallowance on account of interest attributable to the borrowed funds utilized for acquiring the office premises – Assessee made payment of Rs. 13.56 crores for the purchase of office premises. The said amount was paid by the assessee from the loan taken from UTI Bank Ltd – Held that:- The interest paid on the borrowed funds utilized for acquiring such capital asset is allowable as revenue expenditure as per the main provisions contained in section 36(1)(iii) of the Act - Assessee acquired the capital asset of office premises for the purpose of its existing business and not for any extension of its existing business – Decided against the Revenue.
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