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TMI Blog2014 (10) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... e loans as investments and further those companies have not invited funds by open offer from the public are not material as classification of amounts in the books of accounts are not a criteria, for considering the long term finance given by the assessee and further there is no stipulation that there should be an open offer in inviting long term finance under the rules. The conditions considered by the AO are not supported by the provisions of the Act and therefore the AO s action in denying the claim on infructuous reasons cannot be upheld. Interest u/s 234D - Whether interest would not arise, if both the additions made by the AO are deleted? - HELD THAT:- In the earlier paragraphs, we have directed the AO to allow the exemption u/s 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2010 in ITA No.3325/Mum/2009 and CO No.243/Mum/2009 relating to the AY-2004-05 . The ld. Counsel for the assessee invited our attention to the copy of the order passed by the Tribunal placed at pages 46 to 58 of the assessee s paper book. On perusal of the said order, we notice that the Tribunal has allowed the claim of the assessee on noticing that the deduction u/s 10(23G) is being allowed consistently from the assessment year 2002-03 onwards. For the sake of convenience, we extract below the operative portion of the order passed by the Tribunal: 5. We have considered the issue. As the assessee satisfied the conditions for claiming he exemption under section 10(23G) as much as it involved in long term financing and thee entities wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. AR also furnished a copy of the said order of Hon ble Bombay High Court. In view of the decision rendered by the Tribunal which has since been confirmed by the Hon ble Bombay High Court, we set aside the order of ld. CIT(A) on this issue and direct the AO to allow the claim of the assessee of exemption u/s 10(23G) of the Act. 6. With regard to the ground relating to disallowance of interest on (FCNR) under section 43B of the Act, the ld. Counsel submitted that the AO has since deleted the above said disallowance in the order dated 10.5.2011 passed under section 154 of the Act. Accordingly, he submitted that the assessee is not pressing the said ground. Accordingly, the said ground is dismissed as not pressed. 7. The ld. Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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