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2020 (5) TMI 674 - AT - Income TaxDisallowance of Interest on Working Capital - CIT (A) Restricted the disallowance on account of interest to 50% - HELD THAT:- As brought to our notice that the similar issue stands covered against the revenue in the earlier year in [2018 (2) TMI 2027 - ITAT DELHI] for the assessment year 2009-10. Hence, the appeal of the revenue is hereby dismissed. Matter 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.
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