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2014 (7) TMI 385 - AT - Income TaxDisallowance of interest u/s 36(1)(iii) of the Act – Applicability of section 43B(e) of the Act – Held that:- The assessee company is engaged in business of manufacturing of polyester yarn and dealing in cotton yarn and waste - the assessee company debited an amount of ₹ 69,76,984/- to its profit and loss account on account of interest paid on loans taken from banks amounting to ₹ 4,47,24,765 - The assessee company had also given interest free advances to various persons amounting to ₹ 47,38,005 - the decision in assessee's own case for the earlier assessment year followed - the issue relating to the interest disallowance has already been restored by the Tribunal in the own case of the assessee for the preceding assessment years to the file of the AO – thus, the matter is to be remitted back to the AO for fresh adjudication - The AO will also decide the alternative issue relating to the above interest disallowance u/s 43(B) of the Act – Decided in favour of Assessee.
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