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TMI Blog2013 (11) TMI 1732X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) that the conditions under 80IB(11A) are fulfilled. Merely on the ground that no transportation facility has been provided, the claim is rejected, which is bad in law. 2. The ld. CIT(A) has erred in not allowing the interest paid on the bank overdraft of ₹ 1,93,691/-. 3. The ld. CIT(A) has erred in maintaining the addition of ₹ 12,00,000/- on the alleged advances given by the assessee for the cash in hand. The addition has been upheld on surmises and deserves to be deleted. 2. Rival contentions have been heard and records perused. The brief facts of the case are that the assessee is an individual deriving income from warehouse and interest from bank. The return has been filed declaring the total income of Nil, after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion u/s 80IB(11A) of the Act. The action of the AO was confirmed by the ld. CIT(A). 4. From the record, we found that the assessee had shown receipt of warehouse rent from ITC and National Bulk Handling Corporation on which deduction was claimed u/s 80IB (11A) of the Act . Merely because the assessee was not having his own facility of transportation, the assessee s claim was declined. We found that the assessee was having full facility of warehouse and storage, however, transportation facility was taken on hire. Merely because the assessee was not having transportation facilities of his own, the claim of deduction cannot be declined. In the interest of justice, we restore this issue back to the file of the AO for deciding it afresh afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DRs. We direct accordingly. 6. The AO has also made addition of ₹ 12.00 lacs on account of interest earned on money lending business undertaken by the assessee which he accepted during the course of survey u/s 133A of the Act. From the record, we found that during the course survey, the assessee has accepted the fact of advancing the money on interest. In respect of the cash amount withdrawn from the bank, the AO computed the interest at 18% which comes to ₹ 12.00 lacs and added the same in assessee s income. Keeping in view facts and circumstances of the case vis- -vis prevailing market rate of interest, we direct the AO to restrict the addition on account of interest income by computing the same @ 12% instead of 18%. We dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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