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2018 (2) TMI 1927 - AT - Income TaxAddition on account of interest received on External Commercial Borrowings (‘ECBs’) extended to Indian borrowers - interest under section 234B - HELD THAT:- Identical issue having similar facts was a subject matter of the departmental appeal for the AY 2011-12 wherein the issue has been decided in favour of the department and against the assessee the present case, the Assessing Officer himself had admitted by grossing up the ECB interest by the amount of tax borne by the borrowers that tax at source has been deducted. We are thus of the view that no interest under section 234B of the Act can be levied for the tax demand on account of ECB interest and interest under section 234B is also not chargeable since ECB interest received by the assessee from the borrowers was subject to tax deduction at source under section 195 of the Act. The Assessing Officer is thus directed to delete the addition made on account of interest received from ECB given to Indian borrowers Excess levy of the tax under section 234D - AO levied the interest under section 234D of the Act on the amount of refund granted to the assessee in the intimation under section 143(1) of the Act from the date of intimation i.e. 7th October, 2009 to the date of assessment order i.e. 28th July, 2016 passed pursuant to the remand back proceedings i.e. for a period of 82 months. - HELD THAT:- In the present case, the AO considered the regular assessment which was passed by the AO on 28th July, 2016 pursuant to the remand back proceedings on the direction of the ITAT. However, in the present case the regular assessment was framed by the AO on 29th August, 2012 in pursuant to the direction issued by the learned DRP, therefore, the interest on the excess refund was to be charged up to the date of regular assessment i.e. 29th August, 2012 and not to the assessment made on 28th July, 2016 in pursuant to the appellate order passed by the ITAT. We, therefore, direct the AO to charge the interest under Section 234D, if any, up to the date of regular assessment i.e. 29.8.2012 and not up to the date of subsequent assessment order passed i.e. 28.07.2016 in pursuant to the order of the higher authority i.e. the ITAT, in this case. Set off brought forward business loss and unabsorbed depreciation - HELD THAT:- It was the common contention of both the parties that it is to be allowed as per law. We, direct the AO to decide this issue in accordance with law.
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