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2015 (12) TMI 400 - AT - Income TaxDeduction u/s 10B - AO was of the view that even a switch over to Section 10B from Section 80IC of the Act was not admissible subsequently, therefore, held that the claim of the assessee for deduction u/s 10B of the Act was not tenable in law - CIT(A) allowed claim - Held that:- In the present case, the claim of the assessee was under the statutory provisions, only when it became eligible for such claim u/s 10B of the Act. In the present case, the AO disallowed the claim of the assessee only for the reason that it was earlier claiming the deduction u/s 80IC(5) of the Act. However, the assessee had forgone its earlier claim of deduction u/s 80IC of the Act. In the instant case, the assessee had not simultaneously claimed the relief u/s 80IC of the Act, therefore, the Subsection (5) of the said Section 80IC of the Act cannot be used to debar the assessee for claiming the deduction under any other section of Chapter-VIA or Section 10A or 10B of the Act, particularly when the AO had nowhere stated that the assessee had not fulfilled the conditions necessary for claiming the deduction u/s 10B of the Act, he only disallowed the claim of the assessee by relying upon the provisions of Section 80IC(5) of the Act which are not applicable for this year as the assessee did not claim deduction u/s 80IC of the Act. We, therefore, do not see any valid ground to interfere with the findings given by the ld. CIT(A) on this issue. - Decided against revenue Disallowance of interest on unsecured loan advanced to others by observing that it was on higher rate of interest - CIT(A) allowed claim - Held that:- AO had not brought any material on record to substantiate that the interest paid by the assessee to the creditors was not for the business exigencies or that the unsecured loans were utilized by the assessee elsewhere and not for the business purposes. Therefore, there was no justification in restricting the payment of interest at 8% instead of the actual rate of interest at 15%.Accordingly, we do not see any merit in this ground of the departmental appeal. - Decided against revenue Disallowance u/s 40A(2)(b) on interest on loan - CIT(A) allowed claim - Held that:- The interest has been paid by the assessee on the advances or loans utilized for the business purposes and it is not the case of the AO that the loans or advances on which the interest was paid by the assessee were not used for the business purposes. In the instant case, the contention of the assessee that no such disallowance was made in the earlier year was not rebutted and no reason has been given for deviating from the past history. In the present case, the contention of the assessee before the ld. CIT(A) was that there was a credit balance of ₹ 3,81,09,510/- in the partners capital account as on 31.03.2009 and even if the balance of ₹ 2,72,43,107/- in the account of Mr. Pradeep Windlass was to be adjusted, a net balance of ₹ 1,80,66,403/- is left in the partners capital account. The said contention of the assessee had not been rebutted. We, therefore, by considering the totality of the peculiar facts of the present case, do not see any valid ground to interfere with the findings of the ld. CIT(A). - Decided against revenue- Decided against revenue
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