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2018 (2) TMI 1152 - AT - Income TaxAddition of interest income - whether interest on FDs cannot be taxed in the hands of the assessee u/s.56? - Held that:- The interest on fixed deposits are not taxable under income from other sources and, accordingly, we uphold the findings of the CIT(A) and dismiss the ground of appeal taken by the revenue for both the assessment years. Addition of expenses u/s.14A - Held that:- There is no claim and the Assessing Officer by applying the provisions of section 14A r.w.Rule 8D has made the addition. Looking to the facts of the case in its entirety, we are of the opinion that when the assessee has not claimed any expenditure in its return of income either under the head “business income” or “other sources”, the reduction of expenses has no base or legal scrutiny. Therefore the provisions of section 14A are not applicable in this case and, we allow the cross objections of the assessee and delete the addition in both the assessment years under consideration. - Decided in favour of assessee.
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