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2021 (8) TMI 607 - AT - Income TaxDisallowance of foreign exchange loss - assessee itself has failed to prove that the said loans were not used in investment in equity shares and the loan was used wholly & exclusively for business purpose - CIT(A) deleting the 50% addition - HELD THAT:- As relying on assessee's own case [2020 (5) TMI 674 - ITAT DELHI] the matter is being referred to the file Assessing Officer for verification of the utilization of the loan for business purpose by taking into account the amount of the loan raised, the quantum of the own capital and the reserves & surplus, utilization of the amount for day-to-day running of the business and utilization of the amount for investment in the equity shares of the subsidiary company or the amount invested for infusion of the capital in any other company. The AO may then take a considered decision with regard to disallowance of interest on loan and bank charges in accordance with the provisions of the Income Tax Act - Appeal allowed for statistical purposes.
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