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2021 (7) TMI 105 - AT - Income TaxDisallowance u/s 37(1) towards the Interest payment - amalgamation scheme conceived - HELD THAT:- As in support of the impugned interest disallowance and find no merit in Revenue’s stand in principle. This is for the reason that the hon'ble jurisdictional high court’s order approving amalgamation scheme with effect from the appointed date i.e., 01-04-2012 (falling in the relevant previous year) makes it clear that the assessee had undertaken “all the liabilities and duties of transferer company, M/s.Everbig Properties & Finvest Private Ltd.,” who infact had borrowed the principle amount of ₹ 54.75 Lakhs in FY.2004-05 and 2006-07 i.e. well before merger. We further notice that the assessee has also filed a petition dt.26-12-2020 inte alia placing on record audited financial statements of M/s.Gajmukh Investments Pvt. Ltd., (FY.2012-13) Form-26AS of M/s.Gajmukh Investments Pvt. Ltd., for the AY.2013-14 and detailed copy of the amalgamation scheme; respectively. Faced with this situation, we deem it appropriate to express our agreement with the Revenue’s stand qua the foregoing additional expenditure that all these documents require the Assessing Officer’s necessary factual verification. We therefore restore the instant former issue of interest disallowance back to the Assessing Officer for his verification as per law within three effective opportunities of hearing. This former substantive issue is accepted for statistical purposes. CIT-A Restoring the issue of TDS and advance tax claim(s) - Since the power to ‘set aside’ is no more available to him in light of Section 251(1)(a) containing the ‘omission’ to this effect vide Finance Act, 2001 w.e.f.01-06-2001. We find merit in the assessee’s grievance in principle and deem it appropriate to restore the instant latter issue back to the Assessing Officer at the same time to verify the corresponding facts pertaining to the impugned twin heads.
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