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2018 (1) TMI 1004 - HC - Income TaxComputation of deduction under Section 80 HHC - as per tribunal for the purposes of applying explanation (baa) below Sub-Section 4B of Section 80HHC only the 90% of the net interest remain after allowing a set off of interest paid - held that:- This question of law is covered by decision of this Court in Commissioner of Income Tax Etc. v. Shri Ram Honda Powers Equipment Ltd. (2007 (1) TMI 86 - HIGH COURT, DELHI) and ACG Associated Capsules P. Ltd. v. The Commissioner of Income Tax, Central-IV Mumbai (2012 (2) TMI 101 - SUPREME COURT OF INDIA). The Assessing Officer will apply their ratio on applicability and effect of Explanation (baa) and compute deduction under Section 80 HHC. Addition u/s 41(1) - Tribunal deleted the addition - Held that:- No error in the findings and reasons given by the Tribunal. The respondent assessee is a company and accounts were audited as per the mandate of the Companies Act. In the accounts, the respondent assessee had accepted and acknowledged its liability. The creditors can rely on the said acknowledgment - many of the creditors were paid, adjusted or eased in the subsequent years as accepted by the Commissioner of Income Tax (Appeals) and the Tribunal. No special facts or reasons were given by the Assessing Officer to hold and observe that the liabilities had ceased and amounts should be added under Section 41(1) - Decided in favour of assessee
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