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2016 (6) TMI 976 - AT - Income TaxDisallowance of Interest Expenditure claimed under section 36(1)(iii) - CIT(A) deleted the disallowance - Held that:- No interference is called for in the impugned order of the learned CIT(A). We, therefore, sustain and confirm the decision of the learned CIT(A) in holding that since the amount advanced to VTL as share application money was done in the normal course of its business, for purposes of its business and was made on grounds of commercial expediency, the disallowance of interest claimed under section 36(1)(iii) of the Act was not warranted and in deleting the same. - Decided against revenue Disallowance of Upfront Fee paid to Central Bank of India - Held that:- Consequent to our decision, upholding the learned CIT(A)’s view that the share application money advanced to VTL was for purposes of business of the assessee, we also uphold the finding of the learned CIT(A) the ‘upfront fee’ paid to Central Bank of India on loan taken from it is also allowable as a deduction from the assessee’s income. - Decided against revenue
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