2011 (1) TMI 1466

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n Agarwal, CAs. Respondent by : Shri H.K.Lal, Sr.DR. ORDER PER C.L.SETHI, JM : This is an appeal, filed by the assessee, directed against the learned CIT(A)'s order dated 19.3.2010, pertaining to the AY 2003-04. 2. The various grounds of appeal raised by the assessee are directed against CIT(A)'s order in confirming the ad-hoc disallowance of Rs. 87,170/- made by the AO on account o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....om RBI tax free relief bond which has been accrued to the assessee in the year on account of investment made earlier in RBI tax free relief bonds. However, the AO stated that no income can be derived without incurring any expenses. AO further observed that the assessee had made investment of Rs. 1,04,00,000/- in RBI tax free relief bonds and must have incurred expenses on account of bank charge....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1 crore in the FY 2001-02 pertaining to the AY 2002-03 i.e. in the immediately preceding assessment year. The assessee has computed the interest thereupon at the rate of 8.50%. The assessee has also made investment of Rs. 4 lakhs on 3.4.2002 and 1.11.2002 i.e. during the current financial year on which interest at the rate of 8% and 7% respectively has been shown to have been accrued. The assessee....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pose of earning interest on RBI tax free relief bonds, the question of estimating the reasonable expenditure for the purpose of earning interest does not arise. We, therefore, delete the disallowance estimated by the AO and further confirmed by the learned CIT(A). Before parting with the matter, we may observe that the decision of Special Bench in the case of Daga Capital Management (P) Ltd. (supr....