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2019 (3) TMI 1261 - AT - Income TaxDisallowance u/s. 14A r.w.r. 8D towards expenditure incurred in relation to income not includible in total income - HELD THAT:- As decided in assessee's own case it is very clear that the assessment for the assessment year 2010-2011 onwards, the disallowance u/s 14A should be made under Rule 8D by the A.O. In the impugned assessment year, i.e., 2009-2010, the CIT(A) has rightly upheld the order of the A.O. - decided against assessee. Disallowance of deduction of special reserve u/s. 36(1)(viii) - assessee had not advanced any loan as long term finance for development of housing in India, industrial or agricultural development or development of infrastructure facility in India - CIT(A) allowed deduction u/s. 36(1)(viii) of the Act for the income generated from advancing loans to industrial or agricultural development and development of infrastructure facility in India and upheld the action of the Assessing Officer in so far as the disallowance of the claim of the assessee for advances given for development of housing is concerned u/s. 36(1)(viii) - HELD THAT:- Being a Banking Company, it is clear that the assessee is a Specified entity within Clause (iii) of Explanation (a) to Section 36(1)(viii). Amendment provided the deduction to National Housing Bank. But the amendment also substituted the previous words with words 'Development of Housing' which has to be interpreted in its plain dictionary meaning in absence of any definition given. We cannot read into law anything that is not specifically provided therein. Construction/purchase of individual houses does not tantamount to Housing Development. Hence, we uphold the action of the lower authorities in so far as the disallowance of the claim of the assessee for advances/loans given for Development of Housing is concerned. No deduction shall be allowed to assessee u/s 36(1)(viii) for the amount claimed by assessee in respect of advances/loans given for individual houses. Deduction u/s 36(1)(viii) computation - as per DR assessee had not advance any loan for such purposes - HELD THAT:- No infirmity in the order of the CIT(A) in granting relief to the assessee u/s. 36(1)(viii) of the Act with regard to providing long term finance for industrial or agricultural development or development of infrastructure facility in India and the same is confirmed. Interest contemplated under Sections 234A, 234B and 234C is mandatory in nature. In view of the fact that the appellate authorities have considered the matter based on "the judgment of the Supreme Court ANJUM MH GHASWALA AND OTHERS [2001 (10) TMI 4 - SUPREME COURT], this issue is also answered against the appellant Addition on account of depreciation claimed on ‘Held to Maturity’ category investments - HELD THAT:- As decided in assessee's own case held that the depreciation on investment which are "Held to Maturity' and forming part of stock-in-trade is entitled to claim the same as a deduction. - decided against revenue
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