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2019 (4) TMI 1897 - AT - Income TaxDisallowance u/s 14A - Interest expenditure disallowance - disallowing proportionate interest in respect of investment in shares - HELD THAT:- The facts of the present case are similar to the facts of the case of Sudhir MehtaI [2017 (12) TMI 1668 - ITAT MUMBAI] and the issues involved in both the cases are identical. Since, the coordinate Bench of the Tribunal has dealt with the identical issue in the aforesaid case and directed the AO to allow deduction in respect of interest accrued and calculate @ 12% per annum after disallowing proportionate interest in respect of investment in shares after verifying calculation of the interest quantification, we respectfully following the decision of the coordinate Bench, set aside the findings of the Ld. CIT(A) allow this ground of appeal. Since the assessee had not earned any exempt income during the year relevant to the assessment year under consideration, we direct the AO to allow the deduction in respect of interest accrued and calculate @ 12% per annum in terms of the order passed. Interest charged u/s 234A, 234B and 234C - HELD THAT:- Set aside the said issue to the file of AO for re-computation after reducing the amount of tax deductible at source on the income earned and since there is no material change in the facts of the case, there is no reason to take a different view other than the view already taken in the similar matter. Non granting capitalization of interest expenses attributable to share and securities as not allowable u/s 57 (ii & iii) - HELD THAT:- As decided in case of Sudhir MehtaI [2017 (12) TMI 1668 - ITAT MUMBAI] Tribunal has granted capitalization of interest expenses disallowed in the hands of the assessee and directed the Assessing Officer to add the same to the cost of shares and securities - we respectfully following the decision of the coordinate Bench allow this ground of appeal of the assessee and direct the AO to at the same to the cost of shares and securities.
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