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2016 (6) TMI 1079 - ITAT PUNEDisallowance the interest under section 36(1)(iii) - whether the funds have been withdrawn by some of the partners of the assessee firm which is not the business purposes of the assessee? - Held that:- In the instant case, borrowed funds have been presumably utilized for the withdrawal by some of the partners. However, in the same vein, the overall capital continues to remain positive and therefore allowability of interest in the case of the assessee is squarely covered by the decision of the Hon’ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd., (2009 (1) TMI 4 - BOMBAY HIGH COURT ). Thus, contentions advanced by the Ld. AR for the assessee merits acceptance - Decided in favour of assessee Disallowance invoking section 69C - Held that:- CIT(A) has directed the Assessing Officer to reconcile the difference between the entries made in the books of account qua the TDS certificate while drawing conclusion on the issue. We find no infirmity in such direction given as a matter of fair play. Accordingly, we remit the issue back to the file of the Assessing Officer for de novo examination on the issue in accordance with law after giving proper opportunity of being heard to the assessee - Decided in favour of assessee for statistical purposes Allowability of loss - Held that:- We find ourselves in agreement with the directions given by the CIT(A). Winding up of a unit of business is different from winding up the entire business operations. The bad debt is allowable expenditure under section 36(1)(vii) of the Act provided it has been incurred in course of trade and debt or part thereof has been taken into account while computing the income of the assessee in the earlier years. In view of the aforesaid legal position, we remit the issue to the file of the Assessing Officer for de novo examination of the issue. The Assessing Officer shall allow the aforesaid claim on being satisfied that the debts were incurred in the course of trade and conditions as per section 36(1)(vii) r.w.s. 36(2) of the Act are satisfied - Decided in favour of assessee for statistical purposes
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