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2020 (10) TMI 30 - ITAT PUNEInterest paid on term loan as deduction u/s. 57(iii) admissible against business income - As per AO interest income earned on loans and advances cannot be claimed as business expenditure from the profit declared u/s. 80IB(10) and treated the same as income from other sources, held chargeable to tax - CIT(A) having examined the case of assessee held that the assessee is entitled to get deduction under Clause (iii) of section 57 - HELD THAT:- CIT(A) having examined the case of assessee held that the assessee is entitled to get deduction under Clause (iii) of section 57 of the Act but however without there being concrete finding to this effect that the interest paid is for the purpose of earning interest. CIT(A) should not have remanded the matter to the file of AO which in our opinion is contrary to the jurisdiction available to CIT(A). Before us, the ld. AR pointed that the assessee had mixed funds to an extent of ₹ 27.48 crores and no break up to that effect filed before us. In such a situation we deem it proper to remand the matter to the file of CIT(A) to verify the nexus between loans advanced and interest paid for the purpose of interest earning in terms of Clause (iii) of section 57 of the Act. Thus, the order of CIT(A) is set aside and the assessee is liberty to file all evidences if any in support of its claim in terms of Clause (iii) of section 57 of the Act. The CIT(A) shall consider the same and pass the order, in accordance with law. - Appeal of Revenue is allowed for statistical purpose.
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