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TMI Blog2016 (10) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... l under Section 260A of the Income Tax Act, 1961 (the Act) challenges the order dated 23rd October, 2013 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order is in respect of Assessment Year 200405. 2. The Revenue urges only following question of law for our consideration : " (i) Whether on the facts and in the circumstances of the case and in law, the Tribunal was cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 43B(e) of the Act. Consequently, penalty proceedings were also initiated in the assessment order against the respondent assessee. 4. The respondent assessee carried the issue in quantum proceedings in appeal to the Commissioner of Income Tax (Appeals) [CIT(A)]. However, by order dated 12th September, 2008, the order of the Assessing Officer was upheld. This in view of the amendment made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 271(1)(c) of the Act. 6. Being aggrieved, the respondent assessee carried the issue in appeal to the CIT(A). By order dated 5th January, 2012, the CIT(A) recorded the fact that prior to amendment of Section 43B(c) of the Act by the Finance Act, 2003 w.e.f. 1st April, 2004, only interest on any term loan was disallowable, if not actually paid. The CIT(A) also records the fact that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in not adding back the interest not paid on advances and loans to the income during the subject assessment years was a bona fide mistake. This mistake, it held, was on account of the fact that the amendment to Section 43B(e) of the Act requiring the actual payment of interest on loans and advances came into force only w.e.f. 1st April, 2004. The Apex Court in Price Waterhouse Coopers (P) Ltd. Vs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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