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2018 (7) TMI 2192 - AT - Income TaxDisallowance made on account of Special Long Term Finance Fund expenses claimed u/s. 36(1)(vii) - as per AO it is not clear whether the amount set aside by it constitute 20% of the profit derived from the eligible business computed under the head “Profit & Gains of Business and Profession” carried to such reserve account - HELD THAT:- As decided in own case [2013 (8) TMI 1117 - ITAT AHMEDABAD] AOP has wrongly concluded that the appellant did not prove that whatever the amount set aside by it, constitutes 20% of profits derived from the eligible business. All the relevant details are present in the P&L account only and AO himself could have computed the 20% of profit derived from the eligible business. The appellant has again furnished all the required details and worked out the profit 20% of profit thereof. Amount credited to special reserve which is 20% of the income from housing loans and SSI long term loans. This working has not been challenge by AO. It is therefore, held that the appellant has claimed expenses under this head as per provisions of section 36(1)(viii) which are allowable to him. In the result, appeal on this ground is allowed. Addition made on account of Reclassification of capital gain as business income - HELD THAT:- Since, the facts on the issue are identical as that of A.Y. 2009-10, therefore, this issue is set aside to the file of the learned CIT(A) for fresh adjudication in light of decision of S.C. in the case of Sardar Indra Singh [1953 (9) TMI 3 - SUPREME COURT]. This ground of revenue is allowed for statistical purpose.
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