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2015 (2) TMI 1026 - AT - Income TaxApplicability of amended provision of Section 36(1)(III) - CIT(A) held that amended provision of Section 36(1)(III) was not applicable in the case of the assessee as no new assets were acquired and the disallowance of interest was not proper - CIT(A) directing the Assessing Officer to verify the facts regarding the fixed assets related to the term loans from MTIL and IOB as on 31.03.2003 & to verify the contentions of the A.R of the appellant from records to ensure that the same business activity had been continued after renovation - CIT(A) restricting the addition of ₹ 95,100/- to ₹ 19,020/- which was made by AO by invoking provisions of section 14A - Held that:- A perusal of the impugned order shows that the CIT(A) after the submissions of the assessee has further summed up these submissions alongwith arguments and after re-addressing the facts has given the directions to the AO to verify the factual assertions. On a consideration of the directions contained which have been reproduced in the earlier part of this order, we find no infirmity in the direction given. However considering the fact that the CIT(A) as per section 251(1)(a) of the Act has the powers only to confirm, reduce, enhance or anull the assessment and specifically does not have the power to set aside as per the Finance Act, 2001 w.e.f 01.06.2001. Accordingly finding ourselves in agreement with the directions given, we substitute the same by our similar direction to the AO as the Statute bars the CIT(A) to set aside the issue to the AO. The impugned order is modified to this extent. Decided in favour of revenue for statistical purposes.
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