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2022 (3) TMI 1136 - AT - Income TaxDenial of deduction u/s. 80P on the interest income earned by the assessee from Nationalized Bank - quantum of benefit of claim of expenses to be allowed to the assessee against the interest income earned by it from Nationalized Bank for the purposes of subjecting the balance to tax u/s. 56 - HELD THAT:- Out of total income reflected by the assessee the majority expense relate to fixed deposit interest expenditure which accounts for 73% of the total income. What exactly is the nature of the fixed deposit interest expenditure, there is no clarity, whether this has any relation with the earning of interest income from Nationalized Bank. Since the benefit of the Balance sheet and Profit and Loss account of the assessee was not there before the Ld. CIT(A) who therefore made an adhoc estimate of allowable expenses and in view of the fact as stated above by us, noting that majority expenses have been incurred on fixed deposit interest alone, We consider it fit to restore this issue back to the Ld. CIT(A) to adjudicate the issue of expenses to be allowed against the interest income earned from Nationalized Bank to be adjudicated afresh after considering the facts of the case and in accordance with law in this regard. Assessee appeal allowed for statistical purposes.
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