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2017 (4) TMI 958 - ITAT KOLKATADisallowance u/s 14A - Held that:- Ground should be restored to the file of AO, as he has not examined the disallowance u/s 14A of the Income Tax Act, 1961 (Act) with respect to share of profit received by the assessee from partnership firms which are also not includible in the total income liable to tax of the assessee. The ld. DR has rightly relied on the judgement of ITAT Ahmedabad Bench in the case of Vishnu Anant Mahajan vs ACIT (2012 (6) TMI 297 - ITAT, Ahmedabad) Deemed dividend addition u/s 2(22)(e) - assessee pledged his properties to the bank by way of equitable mortgage and also stood as a guarantor for the credit facilities taken by the company - Held that:- The proposition laid down in Pradip Kumar Malhotra Versus Commissioner of Income-tax, West Bengal-V [2011 (8) TMI 16 - CALCUTTA HIGH COURT] that transactions, whether the assessee has permitted his property to be mortgaged to the bank, for the company to take certain benefit by way of loan and when certain facilities granted by such company in lieu of such mortgage and in lieu of the same, the company grants some interest free advance to the assessee, such transaction is not a gratuitous transaction. This principle is fulfilled in the case on hand. Thus respectfully following the same we allow this ground of the assessee as the amount advanced by the company to the assessee is not a gratuitous transaction. - Decided in favour of assessee. Disallowance of interest paid - Held that:- The claim of the assessee has to be examined with the help of a cash flow statement. The assessee should demonstrate whether interest bearing funds have gone into taxable income earning activities. It is for the assessee to demonstrate that interest fee funds have been utilised for personal purposes. The issue has to be examined holistically. This has not been done. Hence we set aside these grounds to the file of AO for fresh adjudication - Decided in favour of assessee for Statistical purpose.
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