TMI Blog2016 (7) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Appellate Tribunal in I.T.A.No.1515/Mds/2012, dated 29.05.2015, by which, the Tribunal has dismissed the appeal preferred by the revenue, against the order of the Commissioner of Income-Tax, dated 31.05.2012. 2. Before the Income Tax Appellate Tribunal, two grounds of appeal have been raised. The first ground of appeal was with regard to addition of ₹ 6,63,48,983/-, towards interest waived by the financial institution and the second ground was to the addition of ₹ 1,98,92,271/-, being the principal amount waived by the financial institution. 3. As regards first ground of appeal, the Income Tax Appellate Tribunal has confirmed the findings of the Commissioner of Income Tax (Appeals), disallowing the above sum of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. 6. As regards disallowance of interest under Section 43B, learned counsel appearing for the appellant submitted that the Tribunal has erred in holding that the assessee is entitled for deduction under Section 43B with respect to the interest on loan waived by the bank in one time settlement. He further submitted that the Tribunal ought to have appreciated that the assessee having not actually paid the interest, no deduction under Section 43B is warranted. 7. According to the Assistant Commissioner of Income-Tax, the assessee-company disallowed an expenditure of ₹ 6,63,48,983/-, under Section 43B of the Income-tax Act, 1961 (in short 'the Act') towards interest payable to financial institution which was return ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years under Section 43B of the Act, the same was claimed as deduction under Section 43B of the Act, during the year under consideration. 10. Having regard to the rival submissions and the material on record, the Tribunal has passed the following orders, Admittedly, the Assessing Officer disallowed the interest to the extent of ₹ 6,63,48,983/- under Section 43B of the Act, while computing the taxable income for the assessment years 2003-04 to 2005-06. In other words, the interest, which is otherwise to be allowable under mercantile system of accounting, was taken as income in view of Section 43B of the Act. During the year under consideration, the IDBI Bank waived the entire interest portion to the extent of ₹ 6,63,48,983 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
