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2015 (9) TMI 590 - AT - Income TaxSetting off of loss of 10A unit against the ‘income from other sources’- disallowance made by the AO on account of assessee’s claim for setting off of the loss of 10A unit against interest income assessed under the head ‘income from other sources’ was confirmed by the ld. CIT(A) - Circulars beneficial to the assessee - Held that:- Keeping in view the legal position emanating from the judgments of Varghese (K.P.) v. ITO [1981 (9) TMI 1 - SUPREME Court] and Keshavji Ravji and Co. v. CIT, [1990 (2) TMI 1 - SUPREME Court] that the benevolent Circulars issued by the CBDT are binding on the revenue authorities and having regard to the undisputed position that the Circular dated 16.7.2013 issued by the CBDT is beneficial to the assessee on the issue involved in the present case, relating to set off of the loss of 10A unit claimed by the assessee against income from other sources, we are of the view that the effect of the said Circular is required to be given, as the same is binding on the revenue authorities. We, therefore, set aside the order of the ld. CIT(Appeals) confirming the disallowance made by the AO on account of the assessee’s claim for setting off of 10A unit loss against ‘income from other sources’ and restore the matter to the file of the Assessing Officer for deciding the same afresh, in the light of CBDT Circular dated 16.7.2013 issued recently after the judgment of Hon’ble High Court of Karnataka in the case of Yokogawa India Ltd, (2011 (8) TMI 845 - Karnataka High Court ). - Decided in favour of assessee.
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