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2019 (9) TMI 731 - AT - Income TaxAddition on account of interest received on External Commercial Borrowings [ECB], extended to Indian borrowers - levy of Interest u/s 234B - HELD THAT:- The issue stands covered in favour of the assessee and against the Revenue held Assessing Officer himself had admitted by grossing up the ECB interest by the amount of tax borne by the borrowers that tax at source has been deducted. We are thus of the view that no interest under section 234B of the Act can be levied for the tax demand on account of ECB interest and interest under section 234B is also not chargeable since ECB interest received by the assessee from the borrowers was subject to tax deduction at source under section 195 of the Act. The Assessing Officer is thus directed to delete the addition made on account of interest received from ECB given to Indian borrowers Levy of interest u/s 234D - HELD THAT:- We have carefully considered the intimation u/s 143(1) of the Act dated 31.10.2012 and the Income tax computation form dated 28.07.2016. We find force in the contention of the ld. counsel for the assessee that refund was adjusted against the outstanding demand vide order dated 31.10.2012. Therefore, in our considered opinion, the Revenue erred in levying interest u/s 234D of the Act for the period July 2009 to July 2016. We, accordingly, direct the Assessing Officer to delete the interest so levied. Claim of set off of brought forward business losses and unabsorbed depreciation - HELD THAT:- We direct the Assessing Officer to allow set off of brought forward business losses and unabsorbed depreciation as per provisions of law.
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