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2022 (4) TMI 1123 - AT - Income TaxDisallowance of interest expense u/s 36(1)(iii) - assesses had given interest free advance to various parties for acquiring immovable properties.- AO was of the opinion that the assessee has not been able to prove the nexus of amounts advanced to the sources of interest free funds i.e. share capital, reserve the interest free loans - CIT-A deleted the addition - HELD THAT:- CIT-A came to a finding that the appellant had sufficient interest free funds as against the advances made during the year under consideration and therefore the assesses case is squarely covered by several case laws including that of Gujarat State Fertilisers and Chemicals Ltd [2013 (7) TMI 701 - GUJARAT HIGH COURT], CIT vs. Gujarat Narmada Valley Fertilisers Corporation Ltd [2014 (3) TMI 847 - GUJARAT HIGH COURT] and CIT vs. Raghubir Synthetics Ltd,. [2013 (7) TMI 806 - GUJARAT HIGH COURT] - Furthermore it was observed that the assessee’s case is squarely covered in assessee’s own case for Assessment Year 2011-12 [2019 (2) TMI 1889 - ITAT AHMEDABAD], 2013-14 [2019 (3) TMI 1836 - ITAT AHMEDABAD] and 2014-15 [2020 (12) TMI 558 - ITAT AHMEDABAD] wherein on the same facts the disallowance made by the learned AO has been deleted and on that basis relying upon the same the learned CIT(A) deleted the addition made against the assessee. We have further considered the order passed by the Coordinate Bench in assessee’s own case for Assessment Year 2013-14 and 2014-15 whereupon we find that the issue is identical and therefore, in our considered opinion the order passed by the Ld. CIT(A) in deleting the addition made by the Ld. Assessing Officer is just and proper so as to warrant interference. - Decided against revenue. Disallowance u/s 14A - assessee company had investment which yielded exempt income and the assessee has debited interest expense on borrowed funds.- HELD THAT:- We find that the Ld. CIT(A) considered the order passed by his predecessor on the similar facts on the identical issue in the appeal preferred by the assessee itself for A.Y. 2011-12 [2019 (2) TMI 1889 - ITAT AHMEDABAD] - We have further considered the order passed by the Coordinate Bench in assessee’s own case for A.Y. 2013-14 [2019 (3) TMI 1836 - ITAT AHMEDABAD] and 2014-15 [2020 (12) TMI 558 - ITAT AHMEDABAD] whereupon we find that the issue is identical and therefore, in our considered opinion the order passed by the Ld. CIT(A) in deleting the addition made by the Ld. AO is just and proper so as to warrant interference. Therefore, the ground of appeal preferred by Revenue is found to be devoid of any merit and hence dismissed. Disallowance u/s 14A of the Act while computing books profits u/s under section 115JB - HELD THAT:- We have further considered the order passed by the Ld. CIT(A) while deleting the order passed by the Ld. AO. It appears that since the disallowance has already been deleted by the Ld. CIT(A) which has been confirmed by us the disallowance while computing income under Section 115JB has also been deleted as found to be justified and hence upheld. This ground of appeal, therefore, found to be devoid of any merit and hence dismissed.
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