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2019 (5) TMI 615 - AT - Income TaxAddition u/s 43B(e) - claim for interest paid to State Bank of Patiala - loans was classified as NPA - HELD THAT:- We find that in spite of the fact that the Bank has not shown amount of interest in question as receivable from the assessee, the assessee claimed the said amount as its business expense of the period under consideration. The assessee has claimed because as per the terms of loan agreement, the said interest accrued. As per the very same loan agreement with the Bank, the amount also become due or payable by the assessee. The payability or amount becoming due does not depend on the accounting entries passed by the bank or the creditor in its books of account but the same depends upon the terms of agreement. We, therefore, do not find force in the above contention of the assessee. The assessee has brought no material either before the lower authorities or before us to show that as per any agreement entered into by the assessee with the bank though the interest in question accrued during the year under consideration but its payability was deferred to any point of time in future. In absence of such an evidence, submission of the assessee cannot be agreed to. Case the assessee furnished an agreement dated 12.07.1989 entered into with ICICI Bank whereby the payability of interest was deferred by the bank. No such agreement could be produced by the assessee in the instant case. The assessee also relied upon the decision M/s Bharat Earth Movers Vs CIT [2000 (8) TMI 4 - SUPREME COURT] where the issue was not of Section 43B but was in relation to accrual of liability even when the actual quantification of liability could not be made. The above decision does not help the case of the assessee as in the instant case, the issue is not of accrual of liability but the issue relates to adding back of unpaid liability u/s 43B(e). Similarly, the other decision relied upon by the assessee also does not touch upon the issue under consideration which is of Section 43B(e). We thus, confirm the orders of the lower authorities and dismiss the grounds of appeal of the assessee.
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