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2014 (2) TMI 1123 - HC - Income TaxBroken period interest on securities – Claim of Expenditure - Banking business – Held that:- The decision in M/s. Indian Bank Versus The Deputy Commissioner of Income-tax Special Range-I [2012 (12) TMI 418 - MADRAS HIGH COURT] followed - payment of extra interest through M/s.Chandrakala & Co to various PSUs as entitled for deduction - the amount paid to the PSUs were properly accounted for disclosing before the Income Tax Authorities - the assessee was entitled to claim deduction on the expenditure incurred by way of payment of broken period interest - Decided in favour of Assessee. Validity of the reopening of assessment u/s 147 of the Act - Power of the AO to reopening of assessment u/s 147 of the Act – Held that:- The decision in Commissioner of Income Tax, Delhi Versus M/s. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT OF INDIA] followed – there was no materials placed by the Assessing Officer for assumption of jurisdiction under Section 147 proceedings - Thus, in the absence of any material, the contention of the revenue cannot be accepted that the reopening u/s 147 of the act was within the parameters – thus, the order of the ITAT set aside – Decided in favour of Assessee. Levy of additional tax u/s 143(1A) – Held that:- The levy of additional tax in respect of computation under Section 115J of the Income Tax Act is already a subject matter in an appeal filed by the assessee and that the present assessment is not concerned about computation under Section 115J of the Income Tax Act, but under the regular procedure, the question of thus adding additional tax in the regular assessment proceedings does not arise – thus, the demand of additional tax under Section 143(1A) of the Income Tax Act on the regular assessment proceedings does not arise – Decided in favour of Assessee.
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