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2017 (1) TMI 724 - ITAT MUMBAIDisallowance of interest on account of interest fee advances - Held that:- Documents of transactions with Menghraj Sons and outstanding debtors details of Menghraj Sons were all filed by the assessee before the AO/CIT(A) as per certificate furnished by the assessee along with paper book filed with the tribunal. We donot find any perversity in the order of learned CIT(A) which we affirm and sustain. No incriminating material has been brought on record by the Revenue to disprove or demolish findings recorded in learned CIT(A) order. The outstanding amount is receivable from M/s Menghraj & Sons on account of normal business transactions between the two entities, although payments were received belatedly. In our considered view, no disallowance of interest towards proportionate interest paid by the assessee on borrowings made by it can be made u/s 40A(2) of the Act as was made by the AO and we order deletion of the said addition by confirming/sustaining the order of learned CIT(A) . - Decided in favour of assessee
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