Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2009 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (5) TMI 582 - AT - Income TaxDisallowance - assessee had claimed a sum of Rs. 6,08,03,230 as interest liability in respect of Deep Discount Bonds issued to banks and financial institutions - section 36(1)(iiia) provides that the pro rata amount of discount on zero coupon bonds having regard to the life of such bonds calculated in the manner as may be prescribed is to be allowed as deduction - Deduction is allowed Regarding applicability of s. 43B - the interest is payable in respect of amounts deposited by financial institutions with the assessee by subscribing to the bonds issued by the assessee - For the same reason, cl. (e) of s. 43B relating to loans and advances from a scheduled bank is also not applicable in the instant case - It is observed that the amount of provision made by the assessee in respect of interest accrued on bonds is not in dispute as excessive or not relating to the year under consideration - Appeal is allowed
|