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2013 (3) TMI 33 - HC - Income TaxDeduction of Interest liability - accrual of interest - ascertained liability - held that:- Applying the principles laid down in the Swadeshi Cotton and Flour Mills Pvt. Ltd.(1964 (4) TMI 8 - SUPREME COURT) and Kedarnath Jute Mfg. Co.Ltd.(1971 (8) TMI 10 - SUPREME COURT), to the facts of the present case, we find that admittedly in the present case the applicant was under an obligation to pay an interest at the rate of 8% per annum on the amount of loan advanced by the State Government and merely because it has disputed its liability by contending that it should not be charged, the liability to pay interest was always there and this plea is of no consequence. The liability was ascertained and, therefore, the Tribunal had rightly held that the claim of interest relating to the previous assessment years is not admissible for deduction during the assessment year in question. - Decided in favor of revenue.
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