M/S KAMAKHYA OIL CO.,NEW DELHI vs. ITO, NEW DELHI

No other issue except the denial of deduction u/s 80IB in respect of interest earned amounting to Rs.22,38,562/- was pressed by the ld. AR. Accordingly, the other grounds including challenge to the initiation of re- assessment, are hereby dismissed.

The facts regarding the denial of deduction u/s 80IB are that the assessee earned interest on FDR under lien with Punjab National Bank amounting to Rs.6,15,334/-; interest on loan from M/s Shree Oil company amounting to Rs.16,16,233/-; and interest on loans to employees at Rs.6,995/-, totaling to Rs.22,38,562/-. The assessee claimed deduction u/s 80IB, inter alia, in respect of such total interest, which was denied by the AO. The ld.CIT(A) upheld the action of the AO.

After considering the rival submissions and perusing the relevant material on record, it is observed that similar issue was involved in the appeal of the Revenue for the immediately preceding assessment year and the Tribunal vide its order dated 13.6.2014 in has finally restored the matter to the AO by giving directions contained in para 6 of its order. Since the facts and circumstances of the instant year are, admittedly, mutatis mutandis similar to the preceding year, respectfully following the view taken by the tribunal in the immediately preceding year, I set aside the impugned order and restore the matter to the file of the AO for deciding this issue in conformity with the view taken by the Tribunal in its order for the preceding year. 2

In the result, the appeal is allowed for statistical purposes.