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2023 (5) TMI 416 - AT - Income Tax
Deduction u/s 80IA - Income derived on FDRs - According to the AO this interest on FDRs is not in the nature of profit and gain from business and it has to be assessed to tax as ‘income from other sources.’ HELD THAT:- As respectfully following the decision in the case of CIT vs. Jagdishprasad M. Joshi [2008 (11) TMI 326 - BOMBAY HIGH COURT], CIT vs. Eltek Sgs (P) Ltd. [2008 (2) TMI 17 - DELHI HIGH COURT] and M/s. Tema Exchangers Manufactures Pvt. Ltd. [2018 (7) TMI 1627 - BOMBAY HIGH COURT] hold that interest earned by the assessee on the FDRs is an allowable deduction under section 80-IA of the Act. Ground No. 3 of the appeal is accordingly allowed.
Disallowance of expenditure u/s 37 and 40(a)(ia) - submission on assessee that insofar as the property tax is concerned, the assessee is filing the property tax receipts for the relevant assessment year and submitted now, whereas the proof of remittance of TDS by way of challan - HELD THAT:- We admit the additional evidence in the shape of property tax receipts. In view of the fact that the relevant material is now available on record in respect of the property tax and also the TDS, it would be just and proper, AO to verify the same and take a view. With this view of the matter, restore the issue relating to disallowance under section 37 and 40(a)(ia) to the file of the learned AO to verify the material and take a view. Grounds are accordingly treated as allowed for statistical purposes.