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2018 (7) TMI 1721 - AT - Income TaxDisallowance of proportionate interest - sufficiency of interest free funds - Held that:- In so far as the revenue does not disprove the contention of the assessee that they had interest free funds in their hands over and above the loans are advances given to the Directors as on such date, inasmuch as such interest-free funds are sufficient to advance such loans to the Directors, the presumption is that the loans would be out of the interest-free funds available with the assessee. Further the impugned order reveals that the business expediency was also pleaded before the authorities below besides demonstrating that the total amount of interest debited to profit and loss account amounting to ₹ 1,47,51,794/- was pleaded to different the bankers/lenders. The impugned order does not commented anything adverse on this aspect. Thus the disallowance of proportionate interest cannot be sustained. - Decided in favour of assessee Depreciation claimed in respect of the asset comprised of land and building components integrally - Held that:- except the year under consideration, for all remaining years from purchase of the asset to its sale, depreciation was allowed on the total value of the asset without resorting to any bifurcations of the asset into the land component and building complaint, but is only for the year under consideration such a view is taken by the Assessing Officer - the rule of consistency demands that the consistent view had to be taken in similar matters of the same assessee over a period of time and to discriminate the issue for a single year is not permissible. Following the decision of the Hon’ble Apex Court in the case of Radhasoami Satsang (1991 (11) TMI 2 - SUPREME COURT) find it difficult to sustain the disallowance of depreciation and the consequential addition. We therefore, direct the assessing officer to delete the disallowance - Appeal of the assessee is allowed.
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