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2016 (12) TMI 362 - HC - Income TaxDisallowance being interest paid to the bank u/s 36(1)(iii) read with Sec.37(1) - Held that:- It is clear that the CIT (Appeals) has on the basis of factual matrix found that the loan was taken. However, by way of subsequent repayment, actual interest was paid as ₹ 5,92,840/-. Therefore, the addition made by the Assessing Officer was deducted. However, the Tribunal in para 15 has gone on a different point which was never germane in the order of the Assessing Officer or the order of CIT (Appeals) and, therefore, on the premise that the loan which was advanced was not a loan but investment. In our considered opinion, that was not the foundation of the reasoning adopted by the Assessing Officer, therefore, the reasoning adopted by the Tribunal in para 15 is not permissible in law. The above finding given by the Tribunal is clearly contrary to material available on record and perverse and hence the order impugned passed by the Income Tax Appellate Tribunal is set aside. We restore the order of CIT(Appeals) and hold that in the facts of the present case, the addition made by the Assessing Officer requires to be deleted and the payment made to the bank by way of interest on loan is required to be allowed as provided under section 36(1)(iii) read with Section 37(1) of the Income Tax Act. - Decided in favour of assessee
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