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2021 (4) TMI 572 - AT - Income TaxDisallowance of interest u/s 14A - HELD THAT:- This issue is no longer res-integra and has already been decided in the earlier years in the assessee’s own case by the Tribunal as well as by the Hon’ble High Court of Uttarakhand [2013 (12) TMI 1711 - UTTARAKHAND HIGH COURT]. We have also perused the impugned order of the CIT(A), wherein the factual aspects of the dispute have been outlined. The submissions of the assessee, noted by the CIT(A) and which have not been controverted before us, clearly establish that the interest free funds available with the assessee bank were in excess of the investments in the tax free securities in question and, therefore, the disallowance out of interest made by the Assessing Officer has been rightly deleted by the CIT(A). In this view of the matter, we hereby affirm the order of CIT(A) and Revenue fails on this aspect. Allowability of claim of deduction u/s 36(1)(viia) and Section 36(1)(viii) - HELD THAT:- As it is seen that the controversy regarding the quantum of eligible deduction allowable to a banking company under Section 36(1)(viia) and 36(1)(viii) of the Act has been decided by the Delhi Bench of the Tribunal in Tourism Finance Corporation of India Limited (supra), which has since been applied by the first Appellate Authority. No decision to the contrary has been brought to our notice, rather, the spirit of the judgment of Hon’ble Supreme Court in the case of Catholic Syrian Bank Ltd. [2012 (2) TMI 262 - SUPREME COURT], in our view, clearly supports the conclusion drawn by the learned CIT(A). Moreover, there is also no controversion to the assertions of the learned Representative for the respondent-assessee that in Assessment Years 2012-13 and 2014-15, the Assessing Authority itself has accepted the stand of the assessee and that such assessments have since become final. In this view of the matter, we hereby affirm the order of learned CIT(A) on this issue. Thus, the Revenue fails on this aspect.
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