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2015 (6) TMI 68 - AT - Income TaxDeduction of Interest income on account of transfer to Trade Guarantee Fund, Broker's Contingency Fund etc. - Fund established as per guidelines laid down by SEBI - Interest income required to be transferred to such funds as directed by SEBI - Held that:- We have perused the compilation filed before us in the light of the case laws cited. We are able to trace an account in the compilation pertained to "brokers contingency fund" in which the Assessee has credited the interest on loan as granted by the Assessee as well as debited an amount given as loan to members. Rest of the accounts were not found in the compilation although it was specifically asked to refer but learned AR has failed to indicate that account. The issue has to be decided in the light of the facts that if there was an overriding title of SEBI then the accrual interest cannot be taxed from the assessee. The Assessee is expected to place on record the SEBI guidelines to substantiate the creation of the fund. The Assessee is therefore directed to place all the three accounts to establish that the interest was made part and parcel of the fund and no part of the interest so accrued was the income of the Assessee. We, therefore, restore this issue back to the stage of the AO to consider all these three accounts and if it is demonstrated that the interest is accrued but funds were taken out for the purpose of the benefit of the members and the assessee has no benefit of accrual of interest then naturally in the absence of the element of "income" the additions so made deserves to be deleted. With these remarks the grounds may be treated as allowed but for statistical purpose being restored back for denovo consideration by the AO. - Appeal is allowed for statistical purpose.
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