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2022 (6) TMI 400 - AT - Income TaxDisallowance u/s. 43B - interest expenses on secured loans - unpaid bank interest on secured loans - HELD THAT:- As far as invoking of provisions of section 43B is concerned, if an assessee claims certain deductions against revenue/income and. If such deductions include any bank interest payable to schedule bank on secured loan, the same is allowable only if it is actually paid. The assessee gets liberty if, in case, interest is not paid during the FY in which the assessee claims, but paid before the due date of filing of return u/s. 139(1) of the Act. Before us, on the basis of submissions made by assessee as well as the comments of the Ld. AO, forming part of statement of facts, we find that out of total alleged amount the assessee has only claimed interest expenses in its P & L account and remaining amount has been shown as pre-operative expenses and assessee has not claimed this expenditure. We find that so far as interest as concerned undisputedly since the same has been claimed in the P & L account, but not paid by the assessee during the financial year 2013-14 and even not before the due date of filing of return u/s. 139(1) of the Act, the same deserves to be disallowed u/s. 43B of the Act and thus, the disallowance to this extent at Rs. 54,07,413/- is confirmed. But, for the remaining amount since the assessee is not claiming deduction in the P & L account and showing it as pre-operative expenses, we confirm the finding of Ld. CIT(A) deleting the disallowance. However, we direct the revenue authorities to take note of this fact that in subsequent years if the assessee claims the Bank interest transferred to pre-operative expenses as an expenditure in the P & L account, the same can be allowed only if the assessee is able to prove with documentary evidences that the said bank interest on secured loans has actually been paid. Appeal of revenue partly allowed.
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