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2012 (7) TMI 297

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....lowance of interest paid for non-business purposes. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 198000/- made on account of disallowance of rent as per provisions of sect ion 40(a) ( ia) of the Income- tax Act , 1961. 3. The Appellant craves leave to add or amend the grounds of appeal before the appeal is heard and disposed off ."   3. In ground No.1, revenue contended that Ld. CIT(A) has erred in deleting the addition of Rs.427490/- made on account of disallowance of interest paid for non-business purposes. Ld. 'DR' referred to page 2, para 3 onwards, of the order of the CIT(A) dated 7.10.2010. 4. Ld. 'AR' , on the other hand, vehemently contended that similar issu....

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....appeal against the said appellate order of the CIT(A) , on similar issue, we are of the considered opinion, that the revenue has accepted the finality of the issue in quest ion. Even otherwise, such financial expenses are eligible for deduct ion, as held by the CIT(A) , by referring to the provisions of Sect ion 2(13) of the Act . In view of the legal and factual discussions, and having regard to the findings of the CIT(A) and the acceptance of the findings of the CIT(A) , by revenue, on similar issue, in assessment year 2006-07, we do not find any merit , in the content ion raised by the revenue, in this ground of appeal . Consequently, findings of the CIT(A) are upheld and this ground of appeal of the revenue is dismissed. 7. In Ground N....

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.... that the issue is squarely covered by the decision of the Special Bench of the ITAT, Vishakhapatnam Tribunal in ACIT Vs. Merilyn Shipping & Transports (supra) . The relevant part of the decision is reproduced hereunder : "12. In view of the above judicial pronouncements of Hon'ble Supreme Court and Hon'ble High Courts, materials placed before us, arguments made by both the sides and in view of the provisions of section 40(a)(ia) of the Act, on comparison between the proposed and enacted provision, the only conclusion which I can reach is that the Legislature consciously replaced the words "amounts credited or paid" with the word "payable" in the final enactment. By changing the words from "credited" or "paid" to "payable", the legislative....