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2023 (2) TMI 687 - AT - Income TaxDeduction allowable u/s 43B - Certain deductions to be only on actual payment - assessee company has paid the custom duty and interest as per the order of Director General of Central Excise Intelligence - HELD THAT:- In the case of Shankar Trading Co Pvt Ltd [2012 (1) TMI 91 - DELHI HIGH COURT] the assessee company had paid interest on Sale tax. The AO had not allowed the said interest as deduction u/s 43B of the Act. However, the Hon’ble Delhi High Court held that it is an allowable deduction u/s 43B of the Act. The facts of the Shankar trading Co P. Ltd (supra) and that of the assessee are identical. In the case of the assessee, the assessee has paid Interest on Customs Duty. In the case of the assessee the Interest on Customs Duty is automatic. Hence, the decision of Hon’ble Delhi High Court is applicable in the case of the assessee. As held in the case of CIT Vs. Andhra Sugar Ltd [2015 (2) TMI 810 - ANDHRA PRADESH HIGH COURT] that provisions of section 43B are applicable on Interest paid on Purchase duty. Thus we are of the considered opinion that the Interest paid by the assessee on Customs Duty is allowable as deduction u/s 43B - Decided in favour of assessee.
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