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2017 (5) TMI 299 - HC - Income TaxDeduction u/s 80P(2)(a)(i) - Held that:- Income Tax Appellate Tribunal is right in law in holding that the appellant is not entitle to deduction up to ₹ 1,48,64,914/- u/s 80P (2)(a)(i) as against the business income assessed at ₹ 1,60,74,331/- and not entitled to deduction as envisaged under the said provision the Income Tax Act, 1961. See Totgars Co-operative Sale Society Ltd. V. ITO, [2010 (2) TMI 3 - SUPREME COURT ] Deduction of expenses on account of interest paid on the borrowed funds under Section 57 - income of the assessee had been assessed as income from other sources under Section 56 - Held that:- In the present case, the appellant had claimed the income to be business income and therefore, no claim for deduction under Section 57 of the Act was made. Once the income of the assessee is treated as income from other sources by the revenue authorities, the assessee would be entitled to claim deduction under Section 57 of the Act in respect of expenses incurred for earning that income. Thus, it would be in the interest of justice that the matter is remitted back to the Assessing Officer to decide the claim of the assessee for deduction under Section 57 of the Act. Accordingly, the issue under thisquestion is sent back to the Assessing Officer, who shall decide the same afresh, in accordance with law, after affording an opportunity of hearing to the appellant.
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