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2016 (1) TMI 805 - AT - Income TaxDisallowance u/s 14A read with Rule 8D - dividend income earned by the assessee - CIT(A) allowed the claim - Held that:- We hold that the Learned CIT(A) had given cogent reasons in his appellate order to disallow a sum of ₹ 25,000/- towards proportionate management expenses in terms of Rule 8D(2)(iii) of the IT Rules as the expenditure deemed to have incurred by the assessee for the purpose of earning dividend income of ₹ 180/-. The factual findings given by the Learned CIT(A) with regard to the availability of own funds with the assessee for the purpose of making the investments have not been controverted by the Learned DR before us. Hence no disallowance is warranted in terms of Rule 8D(2)(ii) of the Rules. No infirmity in the order of the Learned CIT(A) - Decided against revenue Addition towards interest income on hire purchase loans advanced by the assessee - Held that:- AO was not justified in assessing as interest income of the appellant chargeable in AY 2009-10. The AO shall however inform the assessing officer of Guru Mehar Construction regarding the fact that the borrower credited appellant's account with the entire arrear of interest in one year and claimed deduction for the same in one year which is contrary to law. The AO shall also inform the Assessing Officer of the borrower about default committed by the borrower of non deduction of Tax and its consequent effect u/s. 40(a)(ia) of the Act. These directions are issued to ensure that no leakage of revenue occurs as a consequence of the relief allowed to the appellant. - Decided against revenue Unexplained investment u/s. 69 - Addition on difference in hire purchase loan balance as per confirmation obtained from M/s Guru Mehar Construction u/s 133(6) vis a vis the balance as per the books of the assessee - CIT(A) deleted the addition - Held that:- We find lot of force in the argument of the Learned AR that even assuming that the difference in opening balance of loan figure is to be brought to tax, it cannot be added as income in the Asst Year 2009-10 and it should be considered only in the year in which the difference, if any, arose. We find from the details submitted by the said party i.e Guru Mehar Construction, that he had not submitted the transaction details prior to Asst Year 2009-10 and hence it is not clearly discernible from the records as to in which year the difference had arose.In view of this and in view of elaborate findings recorded by the Learned CITA , we find no reason to interfere with - Decided against revenue
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