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2022 (6) TMI 1014 - AT - Income TaxDisallowing unpaid interest - bank interest charged and debited to Appellant's CC account u/s 43B - as argued the amount of interest debited to the CC account, which is a running account, represents interest recovered by the Bank and hence disallowance u/s 43B is not warranted - HELD THAT:- We direct the AO to verify whether the interest on bank liabilities claimed by assessee for the period 01.10.2005 to 31.03.2006 has not been claimed by India Cement Capital Ltd., and it pertains to the period 01.10.2005 to 31.03.2006. Similarly, the AO also can verify the service tax collected by India Cements Capital Ltd., on the assets transferred during the earlier years. In case, the assessee has not claimed this amount as deduction, the same can be disallowed u/s.43B of the Act. This can be verified by the AO. Accordingly both the disallowances u/.43B in regard to this common issue is remanded back to the file of the AO for verification. The appeal of the assessee is allowed for statistical purposes. Disallowance of bad debts written off - assessee contended that entire details including the list of bad debts were given by the assessee during assessment proceedings in regard to these bad debts. He argued that when the receivables were transferred and reflected in the books of assessee, it could not have been written off and claimed by India Cements Capital Ltd - HELD THAT:- As we noted that the CIT(A)’s order is ex-parte and the claim of assessee needs verification at the level of AO. Hence, the matter is remanded back to the file of the AO.
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