9911796707
TMI Blog2011 (5) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... e are cross appeals filed by the rival sides arising from the order of the CIT(Appeals)-IV Surat dated 10.09.2009 passed for Assessment Year 2005-06. [A] Assessee s appeal, ITA No.3148/Ahd/2009 for A.Y.2005-06 2. The effective ground reads as under: 1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax (Appeals) has er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l not be available for deduction under section 80IA. Similar view was also taken by Hon.Punjab Haryana High Court in (2007) Nahar Exports Ltd. vs. CIT 288 ITR 494 (P H). However, once interest income is assessed u/s.56 the expenditure admissible u/s.57(iii) being expenditure incurred wholly and exclusively for the purpose of earning interest income except capital expenditure can be allowed as de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refully considered the reasons given by Assessing Officer also the submissions of the appellant. After carefully analyzing the facts of the case it is seen that so far as interest income on FDR is concerned, I find merit in the contention of appellant that as FDR is placed out of loan borrowed from the bank, the expenditure incurred on loan is required to be reduced from the interest on FDR as s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B on said interest income of ₹ 2,02,386/- is confirmed. Accordingly, out of total disallowance of ₹ 11,47,586/- made by assessing officer, disallowance to the extent of ₹ 9,45,200/- is hereby deleted the balance amount of ₹ 2,02,386/- is confirmed. 4.2. On the basis of observation of ld.CIT(A) since the assessee has not proved the nexus in respect of part of interes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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