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2018 (11) TMI 1313 - ITAT KOLKATADisallowance of provision relating interest expenses - applicability of section 43B(d) - specification on various types of payees - Held that:- The lower authorities case is that the impugned claim pertains to any sum payable by the assessee as interest on a loan or borrowing from the specified financial institutions or state financial institution or state industrial investment corporation, as the case may be. We find no substance in this reason. The Revenue fails to rebut the fact that the legislature has specified various types of payees which nowhere includes a government payee as is the case before us. We make it clear that we are dealing with a disallowance provision in a tax statute liable to be strictly construed. As in DCIT vs M/s. Baghpat Co-operative Sugar Mills Ltd. [2017 (9) TMI 1758 - ITAT DELHI] has held that section 43B does not apply in case of a government payee. We therefore reverse both the lower authorities’ action disallowing assessee’s provision of interest in question.
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