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2021 (2) TMI 1070 - ITAT DELHIDisallowance of interest on customers deposit account - interest that accrues on the customers deposit account is also assessee’s own income and is liable to be taxed in its own hands and relied upon the order passed by the AO - HELD THAT:- Undisputedly, in AY 2006-07 the entire outstanding amount under the head “customer’s deposit” was held to be non-payable and consequently added to the income of the assessee and the corresponding interest was disallowed. It is also not in dispute that in AY 2006-07, ld. CIT (A) held that only the amount of ₹ 127,69,83,720/- was not payable out of the total deposit of ₹ 11,59,32,90,000/- having ratio of these two figures of 11.01% and this order was also followed in AYs 2008-09, 2009-10 & 2010-11. We are of the considered view that when the method of determining the ratio between the payable amount out of total deposits has been consistently followed by the Revenue Department since AY 2006-07 and the order passed by the ld. CIT(A)’s has not been challenged nor any distinguishing facts and contrary provisions of law have been brought on record by the ld. DR for the Revenue, we find no scope to interfere the findings returned by the ld. CIT (A). So, ground no.1 is determined against the Revenue. Disallowance u/s 14A to 0.5% of the average investment income - HELD THAT:- We are of the considered view that when all the investment considered by the AO was not yielding any exempt income, disallowance u/s 14A read with Rule 8D(2)(iii) to the extent of 0.5% of the average investment has been rightly made by the ld. CIT (A). So, finding no illegality or perversity in the findings returned by the ld.CIT (A), ground no.2 is determined against the Revenue.
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