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2020 (10) TMI 22 - AT - Income TaxAddition of interest income on term deposits under the head ‘income from other sources’ - allowability of interest expenditure u/s.57 to the extent of interest income - Against these interest receipts, the assessee had claimed deduction of interest expenditure u/s.57 on the amounts outstanding to related three notified broker entities M/s. Harshad Mehta, M/s. J.H. Mehta and M/s. Ashwin Mehta - HELD THAT:- As decided in own case [2020 (3) TMI 1252 - ITAT MUMBAI] wherein this Tribunal had restricted allowability of interest expenditure u/s.57 of the Act to the extent of interest income. Decided in favour of assessee. Charging of interest u/s.234A, 234B & 234C which was charged without giving credit for tax deducted at source - HELD THAT:- Interest levied under section 234 A. 234B & 234C be recomputed after excluding the income which is subject to TDS. Therefore, as directed to recompute the interest accordingly. In the result, these grounds of appeal are allowed for statistical purpose. Disallowance of interest made u/s.14A - HELD THAT:- As decided in own case [2020 (3) TMI 1252 - ITAT MUMBAI] we are of the view that to the extent the interest relate to the investment, i.e. being disallowable under Section 57 will become part of cost of acquisition of shares and therefore the AO is directed to take it as part of the cost of shares for determining profit on sale of the shares. Thus, the additional ground stands allowed to that extent.
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