TMI Blog2017 (9) TMI 1758X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 85,50,000/-. Addition of Modvat & Canvat receivable - Held that:- It is in the nature of current assets and appearing in the balance sheet. The modvat and Canvat receivable which is paid in advance by the appellant on various items by debiting the receivable account and is shown as an asset item and the same is adjusted against the excise duty to be paid subsequently. The ld. CIT(A) has rightly deleted the addition made by the Assessing Officer on account of Modvat & Canvat receivable. Therefore, this ground of appeal is dismissed. Application of section 43B(d) on interest paid/payable which has not been paid upto the date of filing the return - Held that:- As decided in assessee's own case [2016 (5) TMI 363 - ITAT DELHI] S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of income tax (Appeals) has erred in law and fact in deleting the addition of ₹ 7,47,49,7407- made by the A.O. on account of disallowance of interest u7s 43B(d) of the IT Act, 1961, ignoring the fact that the interest was not paid by the assessee till the date of filing of return. 4. Whether in the facts and circumstances of the case, the Order of the Ld. Commissioner of Income Tax (Appeals) may be set aside and that of the A.O. be restored. 2. The brief facts of the case are that the assessee filed return of income on 09.09.2011, declaring loss of ₹ 20,28,64,160/-. In the assessment proceedings, the AO observed that the assessee is paying interest on loan and at the same time, the assessee advanced funds t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.1,18,29,590/- State Govt. Loan Rs.5,29,65,444/- UP Co-Operative Sugar Factories Federation Ltd. Rs.49,54,623/- Total Rs.7,47,49,740/- The AO observed that the above interest is due to the public Financial Institution and State Financial Corporation, but have not been paid upto the due date of filing the return of income whereas as per section 43B(d), it should have been paid upto the date of filing of return if the assessee wanted to take benefit u/s. 34B(d). In view of this, the AO disallowed the interest to the extent of ₹ 7,47,49,740/-. In appeal, the ld. CIT(A), after examining all the financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f is appearing at page No. 40 under Schedule- T, under interest expenses, U.P. Government at ₹ 5,79,65,444/-. Therefore, the assessee has correctly accounted for it into his books of account and the ld. CIT(A) has rightly deleted to the addition of ₹ 85,50,000/-. 7. The Assessing Officer has added ₹ 10,62,647/- into the income of the assessee whereas it is in the nature of Modvat Canvat receivable, which is appearing in Schedule H under the head Advance excise deposit available at paper book page 31. It is a debit balance of Modvat Canvat claims receivable, which has been wrongly added by the AO to the income of the assessee. It is in the nature of current assets and appearing in the balance sheet. The modvat and C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d due but not paid as under:- Shakkar Vishesh Nidhi Rs.1,18,29,590/- State Govt. Loan UP Cooperative Sugar Rs.5,65,34,280/- Factories Federation Ltd. Rs.1,67,31,128/- Total Rs.8,50,94,998/- 13. Now, the sole question for determination in this case is, as to whether the aforesaid lenders fall in the definition of public financial institution empowering the AO to invoke the provisions contained u/s 43(d)? Identical issue has come up before the coordinate Bench of ITAT, Delhi Bench H , New Delhi in ACIT vs. Baghpat Cooperative Sugar Mills Ltd., ITA No.6157/Del/2012, in assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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