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5. The learned Commissioner of Income Tax (Appeals) erred in law and on facts has confirmed the disallowance of Rs.22,56,000/- being the waiver of HBA Loans allowed to the employees on the death of the employees while in service on the ground that the same is a capital loss.

6. The learned Commissioner of Income Tax (Appeals) has erred in law and on facts in setting aside the disallowance of Rs. 5,95,48,269/- being loss on sale of fixed assets on the ground that the necessary details may be provided to the Assessing Officer.

4. The learned Commissioner of Income Tax (Appeals) has erred in law and on facts in setting aside the disallowance of Rs. 4,04,451/- being loss on sale of fixed assets on the ground that the necessary details may be provided to the Assessing Officer.

5. The learned Commissioner of Income Tax (Appeals) erred in law and on facts has confirmed the disallowance of Rs. 33,77,206/- being the waival of HBA Loans allowed to the employees on the death of the employees while in service on the ground that the same is a capital loss.

Now we take up remaining grounds no. 5 & 6 in ITA No. 1110/AHD/2011 for A.Y. 2005-06.

Ground no. 5 is with respect disallowance of waiver of HBA loans

69. Assessee had claimed Rs. 33,77,206/- on account of waiver of HBA loan and interest. A.O was of the view that the same is not allowable and accordingly disallowed the claim of Assessee. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A) who upheld the order of A.O by holding as under:-