TMI Blog2019 (6) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... of the considered view that when assessee has purchased the FDRs from the cash credit accounts on which it has paid interest, the interest earned on the FDRs is eligible to be set off from/against the amount paid to the bank as interest on cash credit account even by following the rule of consistency. These facts are proved from the statement of account issued by the Canara Bank and State Bank of India. We are of the considered view that when there is no change in the facts and circumstances of the case during the year under assessment and by following the rule of consistency, assessee is entitled for setting off of the interest earned on fixed deposit with the bank against the amount of interest paid to the bank on account of cash credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... off of ₹ 10,45,953 being interest on FDR, which were purchased from the OD account, against the interest paid to Bank on the OD account. 3 The ld. CIT (A) erred in holding that the ground of appeal that, The ld. JCIT erred in charging interest u/s 234D of the Act and further erred in withdrawing interest u/s 244A of the Act; and without prejudice the same are excessive is consequential, without considering the submissions. 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : assessee firm is into the business of manufacturing of aluminum alloy ingots and trading of non-ferrous metal scrap and started its manufacturing unit for manufacturing of aluminum alloys in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee at ₹ 3,39,05,870/-. 5. Assessee carried the matter by way of an appeal before the ld. CIT (A) Who has partly allowed the appeal. Feeling aggrieved, the assessee has come up before the Tribunal by way of filing the present appeal. 6. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. GROUND NO.1 7. Ground No.1 is general in nature, hence does not require any specific adjudication. GROUND NO.2 8. Undisputedly, assessee is entitled for deduction as claimed for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on these cash credit accounts and as such interest earned on fixed deposits on banks should be set off from/against the amount paid to the bank on account of interest in the cash credit accounts. 12. We are of the considered view that when assessee has purchased the FDRs from the cash credit accounts on which it has paid interest of ₹ 3,12,39,400/-, the interest earned on the FDRs is eligible to be set off from/against the amount paid to the bank as interest on cash credit account even by following the rule of consistency. These facts are proved from the statement of account issued by the Canara Bank and State Bank of India, available at pages 7 to 13 of the paper book. 13. In view of what has been discu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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