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Issues involved: Appeal against CIT(A) order u/s 143(3) for AY 2009-10: 1. Rejection of claim u/s 80IB(11A) of Rs. 1,46,564. 2. Non-allowance of interest paid on bank overdraft of Rs. 1,93,691. 3. Addition of Rs. 12,00,000 on alleged advances given by assessee.
1. Rejection of claim u/s 80IB(11A): Assessee engaged in handling, storage, and transportation of food grains claimed deduction u/s 80IB(11A) for income from warehousing. AO rejected claim due to lack of transportation facility. ITAT found assessee had warehouse and storage facilities, transportation was hired. Directed AO to re-decide after considering actual transportation undertaken. 2. Non-allowance of interest on bank overdraft: AO added Rs. 1,93,691 as interest received on bank deposits not disclosed by assessee. Assessee argued loan used for warehouse construction, not accounted for against interest receivable from bank. ITAT directed AO to verify if borrowing was from FDRs and adjust interest income accordingly. 3. Addition of advances given by assessee: AO added Rs. 12,00,000 as interest earned on money lending business accepted during survey u/s 133A. ITAT directed AO to restrict addition by computing interest income at 12% instead of 18% due to prevailing market rates. The appeal by the assessee was allowed in part for statistical purposes.
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