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2024 (2) TMI 880 - AT - Income TaxDeduction u/s 35AC denied - HELD THAT:- As CIT(A), after verifying the facts, came to the conclusion that there is no claim of deduction u/s 35AC of the Act. Therefore, there is no question of any disallowance or addition. Before us, the ld. DR could not bring any factual error or infirmity in the findings of the ld. CIT(A). Addition being interest on loans and advances - Before us, assessee vehemently stated that the ld. DR could not bring any evidence to show that the impugned amounts are loans and advances given to the sister concern - CIT(A) as explained that the transactions mentioned in the chart are self explanatory and are business transactions entered into in normal course of business and are certainly not loans and advances - HELD THAT:- On the contrary, on proper appreciation of facts, we find that the outstanding balances are outcome of business transactions and certainly not loans and advances and further, the AO has erred in imputing an imaginary income which neither accrued nor arose to the assessee. We, therefore, decline to interfere. Ground stands dismissed. Disallowance u/s 14A - CIT(A) deleted addition - HELD THAT:- The undisputed fact is that the assessee has not claimed any exempt income. Therefore, provisions of section 14A r.w.r 8D of the Rules are not at all applicable as held in Cortech Energy [2014 (3) TMI 856 - GUJARAT HIGH COURT] Applicability of amendment brought in the Statute by the Finance Act, 2022 is concerned, the Hon'ble High Court of Delhi in the case of Era Infrastructure [India] Ltd [2022 (7) TMI 1093 - DELHI HIGH COURT] has held that amendment by the Finance Act, 2022 to section 14A of the Act will take effect from 01.04.2022 and cannot be presumed to have retrospective effects. Addition on account of interest income - CIT(A) deleted addition - HELD THAT:- After verifying the facts from the ledger account and after being satisfied with the entries/narrations, the ld. CIT(A) deleted the impugned addition. Before us, the ld. DR could not bring any factual error in the findings of the ld. CIT(A). Assessing Officer has not properly appreciated the facts in true perspective and on proper appreciation of facts, we decline to interfere. Revenue appeal dismissed.
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