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2016 (12) TMI 1839 - AT - Income TaxDisallowance u/s 43B - disallowance of interest claimed on OD/CC Account u/s 43B(d)/(e) r.w. Explanation 3D - CIT-A deleted the addition - HELD THAT:- Tribunal repelled the said plea by interpreting Section 43B and held that overdraft/cash credit accounts are not similar to loan accounts. Tribunal further observed that the interest amount has been actually paid by the assessee through Overdraft/Cash Credit account and, therefore, set aside the disallowance made u/s 43B. A bare reading of Explanations 3C and 3D to Section 43B provides an answer to the problem by making it clear that where interest amount has not been converted into loan or borrowing (or) loan or advance, as the case may be, there is no question of denying the benefit of deduction. In the case on hand, the interest amount has been actually paid by the assessee through Overdraft/Cash Credit account and the same has not been converted into loan or borrowing (or) loan or advance, as the case may be. These appeals are dismissed by answering the question of law against the Revenue and in favour of the assessee
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