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2015 (8) TMI 1267 - ITAT DELHI

2015 (8) TMI 1267 - ITAT DELHI - TMI - Disallowance of subscription of UP, Co-operative Sugar Factories Federation Ltd. - CIT(A) deleted the disallowance - Held that:- CIT followed his order for the assessment year 2003-04 and allowed the claim of the assessee. In fact the AO in his order disallowed the amount by merely following his order for the assessment year 2003- 04. The department accepted the order of the first appellate authority for the assessment year 2003-04. Under these circumstance .....

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se of business, and that this is evident from the sanctioned letters and hence the interest in question is allowable u/s 36(1). As the interest in question is payable to Govt. Of India and the statement of UP Government, section 43(B)(d) does not apply. - Decided against revenue

Disallowance of additional income on the ground that it is in the nature of penalty - Held that:- CIT(A) has rightly held that the expenditure in question i.e additional interest, is a contractual obligation a .....

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the revenue directed against the order of the CIT(A) Meerut dated 4.9.2012 for the asstt. year 2007-08. The assesee is a co-operative society and it filed its return of income for the assessment year 2007-08 on 18.10.2007 declaring total loss at ₹ 18,48,23,232/-. The AO completed the loss of ₹ 1,66,35,600/- disallowing the following :- 1. Subscription to Federation ₹ 16,29,918/- 2. Interest to federation ₹ 1,65,29,427/- 3. Payment of penal interest ₹ 3,07,922/- 2. A .....

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e federation for business purposes and the deduction was admissible under section 37 to the IT Act,1961. 2. Whether in the facts and circumstances of the case the Ld. Commissioner of Income Tax (Appeals) has erred in law in deleting the disallowance of additional interest of ₹ 3,07,922/- paid to the Sugar Development Fund (Govt. Of India) 1991 ignoring the fact that the same was in the nature of penalty. 3. Whether in the facts and circumstances of the case the Ld. Commissioner of Income T .....

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n a careful consideration of the facts and circumstances of the case and perusal of the findings on record and the orders of the authorities below we hold as follows. 5. Ground No. 1 of the revenue has to be dismissed by upholding para 5.3 of the order of the Ld. CIT (A) wherein he followed his order for the assessment year 2003-04 and allowed the claim of the assessee. In fact the AO in his order disallowed the amount by merely following his order for the assessment year 2003- 04. The departmen .....

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