Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 455 - ITAT DELHIDisallowance u/s 43B - Addition on account of bank interest - interest on CC limit - as submitted that the amount of pre-structured term loan was paid out of Cash credit limit (CC account) and therefore interest on pre-structured term loan should be treated as being actually paid - HELD THAT:- As submission of the Ld AR that bank has charged interest on term loan on month to month basis and the same has been recovered by debiting it to the cash credit (CC) account of the assessee. AR has also contended that the amounts of credits (deposits) in the cash credit account are much more than the amount of interest debited by bank. The aforesaid contentions of the AR have not been controverted by Revenue nor has it been found to be untrue. In the case of CIT vs. Shreekant Phumbhra [2016 (11) TMI 796 - CALCUTTA HIGH COURT] CIT(A) had decided the issue in favour of the assessee by holding that the interest accrued on month to month basis had been paid on month to month basis as the deposit of each month was much more than the corresponding interest debited in respective month and as such no part of such interest remained which could be said to have been converted into any loan or advance as on the close of the previous year so as to be deemed not actually paid. The order of CIT(A) was held by Tribunal and upheld by Hon’ble Calcutta High Court.AO was not justified in disallowing the expenses u/s 43B - Decided in favour of assessee.
|