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2019 (8) TMI 1406 - AT - Income TaxAddition on account of broken period interest - HELD THAT:- Tribunal in turn, relying on the ratio laid down by the Hon’ble Bombay High Court in CIT Vs. HDFC Bank Ltd. [2014 (8) TMI 119 - BOMBAY HIGH COURT] had held that broken period interest was allowable as deduction. We hold that the assessee is entitled to claim the deduction on account of broken period interest and dismiss the ground of appeal No.1 raised by Revenue. Disallowance of payments made to retiring staff i.e. on their voluntary retirement - assessee had claimed the said expenditure as ex-gratia payment as in the nature of profits and in lieu of salary, and on the same, TDS was also deducted - AO disallowed the said expenses in view of section 35DDA of the Act and also held that they were not allowed as deduction under section 37(1) - HELD THAT:- This issue also arose before the Tribunal in assessee’s own case in assessment year 2011-12 [2016 (5) TMI 970 - ITAT PUNE] and the Tribunal vide paras 9 to 14 had decided the issue and allowed the claim of assessee. We are referring to the said paras but not reproducing the same for the sake of brevity. Accordingly, we find no merit in the ground of appeal No.2 raised by the Revenue and the same is dismissed.
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