2022 (1) TMI 737

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he learned Assessing Officer under section 80 IA (4) (iii) of the Income Tax Act, 1961 (for short "the Act") to the tune of Rs. 14, 21, 855/-and also the deletion of the disallowance on account of interest paid being the expenses to the tune of Rs. 4, 47, 78, 048/-. 2. Brief facts of the case are that the assessee is a firm and filed their return of income on 26/9/2012 declaring nil income after claiming deduction of Rs. 14, 21, 855/- under section 80 IA of the Act. Assessment under section 143(3) of the Act was complete by order dated 26/3/2015 determining the income of the assessee at Rs. 4, 88, 99, 900/-after disallowing not only the claim under section 80IA of the Act, but also interest paid and claimed as expenses to the tune of Rs.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... to disallowance of Rs. 4, 74, 78, 048/- out of interest paid on bank loan under section 36 (1)(iii) of the Act holding that the interest was not charged on the advances given to partners for non-commercial purposes, Ld. CIT(A) granted relief on the ground that the disallowance of interest is not in the interest of Revenue since if the interest is imputed on the debit balance in the partners account, on account of the funds advanced by the firm to the partners, the same would be allowable expenditure in the hands of the partners thus, reducing the declared income of the partners while the entire income of the firm, including the imputed interest, the assessee would otherwise be exempt under section 80IA (4) (iii) of the Act, which was allow....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rt holding the issue in favour of the assessee for the assessment years 2005-06 to 2010-11 and the Ld. CIT(A) granting relief for the assessment year 2011-12 also, as upheld by the Tribunal. 8. We have gone through the record in the light of the submissions made on either side. As recorded in the preceding paragraphs, consistently the Tribunal and the Hon'ble High Court holding the issue relating to the claim of the assessee under section 80IA of the Act in favour of the assessee and the same stands undisturbed for the assessment year 2010-11 also. In this year also, Ld. CIT(A) granted relief to the assessee by following this consistent view taken in assessee's own case for the earlier assessment years by his predecessor as well as the h....