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2018 (5) TMI 1019 - AT - Income TaxDisallowance u/s 43B on account of unpaid sales tax - Held that:- In view of Circular No. 496. dated 25-09-1987 and Circular no.674 dated 29.12.1993 which are binding on the revenue authorities and in view of the evidence submitted by the assessee that the sales tax had been converted into loan pursuant to provisions of the State Act i.e. West Bengal Sales Tax Act, the assessee is deemed to have complied with the provisions of section 43B and accordingly entitled for deduction of the same. Hence we have no hesitation to consider grant of deduction u/s 43B on account of unpaid sales tax. - Decided in favour of assessee Disallowance u/s 43B on account of unpaid interest to IDBI - Held that:- From a perusal of the aforesaid provision it is very clear that the unpaid interest which got converted into loan cannot be claimed as deduction u/s 43B of the Act. Hence we hold that the CIT(A) had rightly confirmed the disallowance of unpaid interest payable to IDBI. - Decided against assessee.
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