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2014 (1) TMI 877 - AT - Income TaxDeletion made on account of Interest income – Held that:- The decision in B And A Plantations And Industries Ltd. Versus Commissioner Of Income-Tax [1999 (12) TMI 43 - GAUHATI High Court] followed - there is no provision in IT Act empowering the ITO to include in the in the income of the assessee, interest which was not due or collected – The AO should have examined the books of account and should have given specific finding that the assessee has charged more interest - there would have been any complication in the matter or the AO could not have examined the books of account, the proper course is provided in the Act for referring the matter for special audit - the AO did not examine the books of account in detail before arriving at the finding of charging of lower interest and also did not refer the matter for special audit - If the AO was of the view that the assessee has suppressed the interest, he should have given specific finding of fact and should have brought some material on record to justify his findings - even the book results of the assessee have not been rejected u/s.145(3) of the IT Act - the AO has merely estimated notional interest, which was not due or received by the assessee – Decided against Revenue.
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