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2021 (2) TMI 1059 - HC - Income TaxDisallowance of Expenditure relating to loose tools - despite opportunity being given, the assessee has failed to produce the complete details of the materials received including inventory of materials, date, time and delivery of the loose tools - HELD THAT:- The assessee company has also failed to produce the material receipt register. Though it has been contended by the assessee before the tribunal as recorded in para11 of the order passed by the tribunal that assessee had produced the C.D. containing the details as requested by the Assessing Officer at the time of hearing. However, the tribunal has not recorded any finding with regard to aforesaid contention of the assessee and in para 14 has recorded the finding in favour of the assessee. In view of the reasoning assigned by the Assessing Officer in his order for disallowing the claim and in view of the assertion made by the assessee that it had furnished the details, the tribunal ought to have ascertained whether or not the assessee had furnished the details as contended by him. Therefore, in our opinion the matter requires adjudication afresh by the tribunal so far as first substantial question of law is concerned. Therefore, the first substantial question of law is answered accordingly. Addition of interest - interest free loan to two of its subsidiaries company - HELD THAT:- The assessee again has contended before the Commissioner of Income Tax (Appeals) as is evident from para 3(ii) of the order passed by the tribunal that the assessee's own funds were ₹ 124 Crores whereas, the loan advanced is to the tune of ₹ 64 Crores. However, in this regard also, we find that the tribunal has not recorded the any finding whether or not the interest free loans were given from the borrowed funds or from the assessee's own funds. Therefore, the aforesaid issue also requires adjudication afresh by the tribunal. Accordingly, the second substantial question of law is answered. Addition u/s 43B - deposit of property tax amounts to crystallized liability - difference between the taxes actually paid under Section 43B of the Act and taxes deposited as per the directions of the Court, when the liability to tax is disputed by the assessee and recorded a perverse finding - HELD THAT:- From perusal of Section 43B of the Act provides that any sum payable by way of tax, duty, cess or fee shall be allowed in the year in which it is actually paid. It is not in dispute that on account of directions issued by the court, the assessee paid a sum of ₹ 87,50,000/- towards property tax. Therefore, the assessee is entitled to deduction to the extent of property tax which was paid by it. The Commissioner of Income Tax (Appeals) appeal as well as the tribunal have rightly held that the liability was certain and has rightly deleted the disallowance. Reference in this connection may be made to decision of the Supreme Court in BHARAT EARTH MOVERS [2000 (8) TMI 4 - SUPREME COURT]. Substantial question of law is answered against the revenue and in favour of the assessee.
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