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2018 (4) TMI 515 - AT - Income TaxInterest disallowed u/s 36(l)(iii) - Held that:- We find that is undisputed that the investment has been done out of mixed source of funds. The assessee had sufficient own funds which covers more than the investment made. Moreover, the ld. Commissioner of Income Tax (Appeals) has also given a finding that the loan funds were for specific purpose and there has been no dilution of the same. Provision for mark to market loss disallowance - assessee has not filed the appeal against the disallowance but in the current assessment year it has passed a reversal entry debiting the provision and crediting the profit and loss account - Held that:- Apparently, there is some discrepancy in the claim made and the disallowance earlier done. However, in our considered opinion, this issue needs to be examined by reference to the actual books of account and the entries therein. If the facts narrated by the ld. Counsel of the assessee are to be applied, there is a reversal entry debiting the provision and crediting the profit and loss account by sum of ₹ 29,42,23,853/- which represents the disallowances made in the earlier year. In our considered onion, this issue needs to be examined by the A.O. with reference to the books of account. Hence, we remit this issue to the file of the Assessing Officer. The Assessing Officer is directed to examine this issue afresh after giving the assessee proper opportunity of being heard.
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