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2017 (9) TMI 1349 - AT - Income TaxDisallowing the interest - whether it is a normal business expenditure - Held that:- Undisputedly during asstt. Year 2012-13 Ld. CIT(A) has allowed the interest being interest on the loan from Govt. of India by following the decision rendered by coordinate bench of the Tribunal in assessee’s own case for asstt. year 2005-06. When the interest on the same component of loan taken by the assessee company from Govt. of India for day to day running of the company and the loan repayable on interest has been allowed in asstt. year 2005-06 and 2012-13, there is no ground to disallow the interest claimed by the assessee during the year under assessment. Furthermore when winding up proceedings are undisputedly pending before the Hon’ble High Court loan taken by the assessee company is to be treated as a loan to run the entire business and the interest component can not be restricted to BFF unit as has been done by AO/CIT(A). So there is not iota of evidence of record that the loan taken on which interest has been claimed and disallowed by the revenue was not utilized for running day to day business of the company and the loan is repayable alongwith interest and as such are revenue expenses for all intents and purposes so we hereby delete the addition on account of interest - Decided in favour of assessee. Revision u/s 263 - Addition on account of capital gain - Held that:- In the instant case the revenue has neither invoked provisions contained u/s 147/148 nor provisions contained u/s 263 to tax the new source of income and as such the order passed by Ld. CIT(A) to the extent of making addition on account of long term capital gain is beyond jurisdiction and as such is not sustainable.So without entering into the merits of this issue we are of the considered view that the addition made by Ld. CIT(A) to the tune of ₹ 92,52,933/- on account of long term capital gain is not sustainable.
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