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2014 (6) TMI 1027 - HC - Income TaxApplicability of section 14A for making disallowance out of income which eligible for deduction u/s. 80P(2)(d) - no nexus between the interest /dividend income earned from the Cooperative Societies and the interest expenditure incurred by the assessee on borrowed funds on the ground that there is no proof of the investment of such interest bearing funds to earn the said income without appreciating the fact that the assessee has failed to substantiate the above in full measure with proper evidences? HELD THAT:- In view of decision decision of the Hon'ble Supreme Court in the case of Distributors (Baroda) P. Ltd vs. Union of India [1985 (7) TMI 1 - SUPREME COURT] we are in complete agreement with the view taken by the learned Tribunal allowing the deduction to the assessee under Section 80P(2)(d) of the Act on the amount of interest and dividend earned on the investment / deposits with the other cooperative societies. We see no reason to interfere with the impugned judgment and order passed by the learned Tribunal. Under the circumstances, in all these appeals with respect to grant of deduction under Section 80P(2)(d) of the Act is held against the revenue Admission of additional evidence - appeal of the revenue against the order of learned CIT(A) being bad in law, being passed against the natural justice, where new claim was accepted by him and against Rule 46 A and without even confronting it to the Assessing Officer - HELD THAT:- Tribunal in the impugned order has specifically observed and has given specific findings that all the details, which came to be considered by the learned CIT(A) were as such before the learned AO, on which, learned AO concluded otherwise. The learned Tribunal also observed that balance sheet and P & I Account were available in all the years that the AO gave the figures on which the learned CIT(A) relied upon. The learned Tribunal has specifically observed that thus there is no additional evidence submitted by the appellant before the learned CIT(A) in A.Y. 2006-07. Under the circumstances and in view of the aforesaid factual findings recorded by the learned Tribunal, we dismiss present appeal on the said ground also.
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