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2017 (4) TMI 455 - ITAT MUMBAINon grant of credit of TDS on interest earned on FCCBs - Held that:- Both parties to this issue are in agreement that this issue of the assessee’s claim of grant of credit for taxes deducted at source on interest received on FCCBs requires to be restored to the file of the AO for verification thereof in accordance with law, with which proposition we too are in agreement. We, therefore, restore this issue to the file of the AO with the direction to verify the assessee’s claim in accordance with law and before granting credit for the impugned TDS to the assessee, fully satisfying himself that the amount of TDS has been deposited into the Government’s account; that the assessee is the lawful deductee, that the gross amount of interest has been considered as the assessee’s income and that no other person has or will claim credit of the very same taxes. We hold and direct accordingly. This ground is accordingly treated as allowed for statistical purposes. Non grant of TDS credit on interest earned on fully convertible debentures and fees for technical services - Held that:- Both parties are in agreement that this issue of the assessee’s claim for grant of TDS credit on interest earned on fully convertible debenture and fees for technical services requires to be restored to the file of the AO for verification thereof in accordance with law; with which suggestion we are also in agreement. We, therefore, restore this issue to the file of the AO with the direction to verify the assessee’s claim in accordance with law and before granting credit for the impugned TDS to the assessee, fully satisfy himself that the amount of TDS has been deposited into the Government’s account; that the assessee is the lawful deductee; that the gross amount of interest has been considered as the assessee’s income and that no other person has or will claim credit of the very same taxes. Interest earned in respect of investments made in FCCBs issued by Dolphin Offshore Enterprises (India) Ltd. - Held that:- The assessee’s contention is that the AO erred in considering and taxing the entire interest amount of ₹ 20,97,204/- received by the assessee’s group companies from Dolphin Offshore Enterprises (India) Ltd. As agreed to and suggested by both parties, we set aside this issue also to the file of the AO to consider only the actual amount of interest received by the assessee from Dolphin Offshore Enterprises (India) Ltd. in the hands of the assessee company and not the entire amount of interest paid to the group companies.
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