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2019 (6) TMI 43 - ITAT DELHIDeduction u/s 80-IB - excess claim of exemption made - netting off of interest - setting off of amount of interest earned on FDRs against the amount paid to the bank on account of interest on cash credit - HELD THAT:- Assessee has come up with a specific submission that FDRs have been purchased from the cash credit account maintained with the banks and during the year under assessment, assessee firm has paid interest on these cash credit accounts and as such interest earned on fixed deposits on banks should be set off from/against the amount paid to the bank on account of interest in the cash credit accounts. We are of the considered view that when assessee has purchased the FDRs from the cash credit accounts on which it has paid interest, the interest earned on the FDRs is eligible to be set off from/against the amount paid to the bank as interest on cash credit account even by following the rule of consistency. These facts are proved from the statement of account issued by the Canara Bank and State Bank of India. We are of the considered view that when there is no change in the facts and circumstances of the case during the year under assessment and by following the rule of consistency, assessee is entitled for setting off of the interest earned on fixed deposit with the bank against the amount of interest paid to the bank on account of cash credit account on the line of earlier years as well as subsequent years. - Decided in favour of the assessee.
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