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2017 (10) TMI 1354 - AT - Income TaxDisallowance of the loss arising due to the payment made by the assessee towards the premature termination of the securitization agreement with Axis Bank - Nature of loss - AO had held that the nature of the outstanding principle could partake the character of the capital loss only and not Revenue loss. - Held that:- On merits, the assessee has produced no evidence to substantiate his case that the income in respect of the securitization of the said loans has been offered during the relevant assessment years. The assessee is also not in a position to show the agreement with the Axis Bank in respect of the preclosure of the securitization or the mutually agreed to computation. - Additions confirmed. Disallowance u/s. 14A r.w.r. 8D - CIT(A) deleted the disallowance - CIT(A) had excluded the interest amounts pertaining to the term loans for the purpose of computing the disallowance u/s. 14A r. w. r. 8D. - Held that:- The assessee has produced evidence before the Ld. CIT(A) claiming that the investment in the government securities have yielded taxable income and the same have been accepted by the Ld. CIT(A). However, as these evidences have not been verified by the AO, in the interest of natural justice, the issue of the computation of the disallowance u/s. 14A r. w. r. 8D is restored to the file of the AO only because the evidences have been produced before the Ld. CIT(A) and he has done the verification without granting an opportunity to the AO. - Decided in favor of revenue for statistical purposes.
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