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2015 (4) TMI 943 - HC - Income TaxDeduction under Section 43B - Tribunal held that principal sum waived, is offered to tax, and as such, the disallowance is to be subsumed into offer on waiver of Principal, which is against the sum and substance of the scheme of allowing deduction under Section 43B which is based on actual payment of interest and recorded perverse finding - Held that:- If out of the total sum of ₹ 257.08 Lakhs which has been offered and subjected to tax by the assessee in its return, the amount of unpaid interest of ₹ 193.96 Lakhs is deducted then the waived principal sum would come to ₹ 62.58 Lakhs (i.e., 441.30 minus 378.72). Either it is the interest which is to be waived, and if the same is not to be waived, then the waived principal amount of ₹ 257.08 Lakhs has to be reduced by the amount of interest of ₹ 193.96 Lakhs which is not permitted for deduction under Section 43B of the Act. In either case, the amount of deduction, as well as the amount which is subjected to tax, would come to the same. If we accept the argument of learned counsel for the appellant - revenue, then it would amount to the department having the cake as well as eating it, which would mean subjecting the assessee to double jeopardy. This cannot be permitted. Either the interest amount has to be allowed for deduction under Section 43B or the sum offered for tax (as waived by the Bank) has to be reduced by the amount of interest paid. Thus we do not find that any infirmity with the order of the Tribunal of allowing the disallowance of interest under Section 43B of the Act to be subsumed into the offer of waiver of principal amount.
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