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2019 (6) TMI 1166 - HC - Income TaxDeduction u/s 80IA - whether assessee is contractor or developer ? - HELD THAT:- Appeals admitted for consideration of following substantial question of law:-“Whether the respondent - assessee fulfills the requirement stipulated in Section 80-IA(4) of the Income Tax Act, 1961 once the conclusion reached is that it is contractor and not developer as stated in the sub-section?” Proportionate disallowance of interest on diversion and advance of funds for non-business purposes and investment in non-business activities - whether all the funds are in common hotchpotch and it cannot be distinguished / proved whether such advances are out of own funds or out of interest bearing borrowed funds? - HELD THAT:- Before the CIT(A) assessee supplied a statement showing the amount paid, bills adjusted and the balance payable in respect of sub-contractors for whom the job workers were doing the work. CIT(A) accepted such explanation and deleted disallowance. Revenue carried the matter in appeal. Tribunal dismissed the Revenue's appeal inter alia accepting CIT(A)'s observation that the assessee had his own sufficient interest free funds which were much higher than the advances made by the assessee. Thus, no interest bearing funds were utilized by the assessee for such purpose. Essentially, this is a question of facts concurrently held by the CIT(A) as well as Tribunal in favour of the assessee. No question of law arises in this respect.
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