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2014 (1) TMI 849 - ITAT MUMBAIPower of Revision u/s 263 of the Act - Allowability of broken period interest – Held that:- Although the disallowance on account of broken period interest relating to securities bought in the year under consideration but held in the stock as on 31-3-2008 was required to be disallowed, the interest accrued but not due having been added to the income of the assessee - the disallowance on account of broken period interest was not required to be made – Relying upon American Express International Banking Corporation Versus Commissioner Of Income-Tax. [2002 (9) TMI 96 - BOMBAY High Court] - when the broken period interest received is taxed in the hands of the assessee, the interest for broken period paid by the assessee cannot be disallowed. A sound and convincing basis thus was given by the A.O. to justify the addition made on account of disallowance of broken period interest on protective basis - There was no error in the orders of the A.O. passed u/s 143(3) of the Act for both the years under consideration on this issue as alleged by the ld. CIT calling for any revision u/s 263 of the Act - orders of the CIT passed u/s 263 of the Act for assessment years 2008-09 and 2009-10 set aside and the matter restored to the AO passed u/s 143(3) of the Act – Decided in favour of Assessee.
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