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2010 (10) TMI 761 - AT - Income TaxAddition - Classification of interest on inter-corporate deposits, interest on bank FDRs (after setting off against interest paid) and interest on bonds and securities as 'income from other sources'- the issue also covered against the assessee, by the decision of Hon'ble Delhi High Court in the case of C.I.T. vs. Shri Ram Honda Equipment (2007 -TMI - 2891 - HIGH COURT, DELHI) Custom duty draw back - Accrued during the relevant assessment year - There is no dispute to the well settled legal proposition that even under accrual system of accounting, till the assessee get right to receive the income the same cannot be brought to tax. Unless the concerned department intimate the acceptance of claim of the assessee, the assessee do not acquire any right to receive the same. - decided in favor of assessee. levy of interest u/s 234B - the assessee submitted detailed submissions and case laws for the proposition that interest was not leviable. Moreover, he also submitted that he has given elaborate submissions before the Ld. Commissioner of Income Tax (Appeals) - But Ld. Commissioner of Income Tax (Appeals) has not addressed all the submissions -Further find that Ld. Commissioner of Income Tax (Appeals)'s order is a laconic order on this issue - Accordingly, remit this issue to the files of Ld. Commissioner of Income Tax (Appeals) to consider the issue afresh and pass a proper and speaking order. Disallowance u/s 43B (actual payment clause)- adjustment amounts to actual payment - Even the learned counsel for revenue has no objection to such contention provided such deduction was not allowed in the preceding year since double deduction of the same amount cannot be allowed - Considering the same, the order of Ld. Commissioner of Income Tax (Appeals) is modified and the matter is remitted to the file of Assessing Officer who shall allow the alternate claim of assessee after verification if such deduction was not allowed in the preceding year - Since it has been held that advance payment did not represent the payment of excise duty, the question of including the same in the closing stock does not arise - Therefore, finding of Ld. Commissioner of Income Tax (Appeals) to that effect is vacated. Interest u/s 234D - As per the the decision of the Delhi Tribunal in the case of M/s Glaxo Smithkline Asia (P) Ltd. vs. ACIT (2005 -TMI - 64215 - ITAT DELHI-C), tribunal held that the law dealing with the imposition of interest u/s 234D is substantive law and not procedural law and, hence, interest under this section cannot be charged in respect of assessment years prior to the coming into force of section 234D i.e. 1.6.2003. Hence, he directed that interest u/s 234D would not be chargeable - Decided in favour of assessee.
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