TaxTMI 
TaxTMI 
2007 (11) TMI 676
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.... Income Tax Act and by the said order the Tribunal also directed the A.O. to deduct interest paid at Rs. 76,555/- on cash credit of Rs. 3.65 lacs. In so far as the deduction under Section 80IA is concerned the Tribunal relied upon the decision given by the Tribunal in assessee's own case for assessment year 1997-98 by which the Tribunal had held that the deduction under Section 80IA having been allowed to the assessee by assessing officer in the initial year i.e. 1992-93 he was not justified in denying such deduction in the subsequent years. Reliance was placed by the Tribunal upon the decision of this Court in CIT vs. Paul Brothers ( (216 ITR 548). 4. In so far as disallowance of interest on cash credit is concerned, the Tribunal obse....
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....e the tax effect was quite low. In so far as the direction to allow interest paid on cash credit is concerned Mr. Parchure submitted that the CIT as well the Tribunal erred in allowing deduction claimed by the assessee in respect of the payment of interest on cash credit since genuineness of cash credit was itself disputed. 6. Mr. K.P.Dewani submitted that the impugned order passed by the ITAT cannot be faulted inasmuch as the Tribunal has relied upon the decision of this Court in CIT vs. Paul Brothers (supra) in terms of which if certain deduction is permitted in a particular assessment year, the same could not have been disallowed for subsequent assessment years. 7. In so far as the deduction claimed by the assessee in respect of the p....