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2017 (11) TMI 1062 - AT - Income TaxDisallowance of interest - Held that:- Revenue has not disputed the fact that the assessee is having unsecured interest free advances. Under these facts, the Assessing Officer ought not to have made disallowance of interest. Accordingly, we hereby direct the AO to delete the disallowance. - Decided in favour of assessee Disallowance made by invoking the provision of Section 40A(3) - Held that:- The Hon’ble High Court in the case of Anupam Tele Service vs. ITO (2014 (2) TMI 30 - GUJARAT HIGH COURT) under the identical facts decided the issue in favour of the assessee held that payment between the assessee and the Tata Teleservice Ltd. were genuine. The Tata TeleServices Ltd. had insisted that such payments be made in cash, which Tata Teleservices Ltd. in turn assured and deposited the amount in a bank account. In the facts of the case of assessee, rigors of Section 40A(3) must be lifted. Since, the facts are identical and the assessee has demonstrated that the assessee made payment in cash at the instances of the finance company, therefore rigors of section 40A(3) must be lifted.- Decided in favour of assessee
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