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2019 (7) TMI 1031 - ITAT VISAKHAPATNAMDeduction u/sec. 80P - earning of income relating to the letting of godowns, the correct income derived from the business or profession - CIT-A observed that the assessee had received the income from letting out of godowns to the extent of ₹ 1.11 crores and earned the dividend income of ₹ 3.43 crores thus entitled for deduction - HELD THAT:- As per the computation of income the assessee had earned free interest income of ₹ 15.96 crores and except for income from other sources, the income from business and profession resulted in loss. The assessee admitted income from house property, but did not show any income from letting out of godowns or warehouses. For a query from the Bench, ld.AR submitted that the income received from letting out of godown was included in the income from house property or income from business, but he could not specifically show or confirm in which head of income it was included/clubbed. As per the act the Income received from letting out of godown or warehouses is allowable deduction u/sec. 80P(2)(e) - AR submitted that the assessee had received the interest the income of ₹ 15.96 crores and paid the interest of ₹ 51.02 crores and argued that if the interest payment on loans related to the deposits is excluded from business income it would result in positive income. However, during the appeal hearing, ld.AR could not furnish matching details of interest payment, the interest receipts with the loans and deposits. Therefore, we are of considered opinion that the above information is required to decide whether the assessee derived income from business or not? Therefore, in the interest of justice we are of the considered view that the issue needs to be remitted back to the file of the Assessing Officer to examine the earning of income relating to the letting of godowns, the correct income derived from the business or profession. AO should exclude the interest related to the loans for arriving the income business or profession. Therefore, we set aside the order of the AO on the issue of disallowance made u/s 80P and remit the matter back to the file of the AO to decide the issue afresh on merits and as per law. - Appeal of the assessee is allowed for statistical purpose
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