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2014 (4) TMI 900 - HC - Income TaxDirection to complete the Assessment – Order cancelled u/s 154 of the Act – Held that:- The decision in Commissioner of Income Tax, Bareilly and Others vs. M/S. Rampur Distillery & Chemical Co. Ltd. [2014 (4) TMI 901 - ALLAHABAD HIGH COURT] followed – The CIT(A) has directed the AA to pass the order for the period of 27 months -The Assessing Authority passed the assessment order in pursuance of the order of CIT(A) u/s 251 of the Act and in pursuance of the order arising from the assessment order, the appeal has been decided by CIT (A) and by the Tribunal – thus, it is not upon to the Revenue to raise the issue again – Decided against Revenue. Deletion of disallowance of interest – Held that:- Following the decision in Commissioner of Income-Tax And Another Versus Radico Khaitan Ltd. [2004 (9) TMI 37 - ALLAHABAD High Court] – the conditions u/s 36(1)(iii) of the Act have been complied with – thus, the assessee-company was entitled to full allowance of the amount of interest paid by it on borrowed capital - Decided against Revenue. Deletion of disallowance u/s 37(1) of the Act – Held that:- the club membership fees for employees incurred by the assessee is business expense u/s 37 of the Act – Decided against Revenue. Deletion of investment allowance on distillery unit – Held that:- Following the decision in Commissioner of Income-Tax And Another Versus Radico Khaitan Ltd. [2004 (9) TMI 37 - ALLAHABAD High Court] – In view of the specific provisions contained in sub-section (2A) of section 32A of the Act, investment allowance is not admissible in respect of the plant and machinery installed for the purpose of manufacturing any of the items mentioned in the Eleventh Schedule – Decided in favour of Revenue.
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