9911796707
TMI Blog2021 (4) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Briefly the facts of the case are that the assessee company, engaged in the business of manufacturing of aluminum, filed its return of income on 27.11.2014 for the A.Y. 2014-15 declaring a loss of Rs. (-) 27,26,68,435/- under normal provisions and (-) Rs. 40,64,54,037/- under the provisions of Section 115JB of the Act. The case was selected for scrutiny under CASS and notices were issued u/s. 143(2) & u/s. 142(1). The assessment was completed u/s. 143(3) on 30.12.2016 by determining total income at (-) Rs. 13,90,33,666/-. 2.1. During the assessment proceedings, the Assessing Officer noticed that the assessee company was asked to submit details of interest expenses debited to the P&L Account to the tune of Rs. 33,81,76,449/-. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Aggrieved by the order of CIT(A), the assessee is in appeal before the ITAT. 5. The ld. AR of the submitted that out of the entire term loan interest of Rs. 312,23,29,409/- only an amount of Rs. 33,81,76,449/- was charged to Profit & Loss A/c, which constitutes 10.83% of total interest expenses and the balance 89.17% interest amount of Rs. 278,41,52,960/- was transferred to Capital Work in Progress in the proportion of assets capitalized. He submitted that the company has not paid interest on term loans obtained from LIC of India and Union Bank of India to the extent of Rs. 13,36,34,769/-. As stated above, the company has apportioned the total interest incurred during the Financial Year 2013-14 to Profit & Loss A/c and Capital Work in p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "the assessee company failed to furnish any logic in apportioning at the ratios mentioned by itself. In absence of any relevant material supporting that the amount debited towards interest amounting to Rs. 33.81 crores in P&L Account, it is presumed that the unpaid interest also included in the debited amount to P&L Account. As per the provisions of Clause(d) of section 43B of IT Act any sum payable by the assessee as interest on any loan from any public financial institution in accordance with the terms and conditions of agreement governing such loan is allowable as deduction if such sum is actually paid. In the instant case the assessee company failed to pay the interest amount as detailed above of Rs. 13,36,34,769/- on or before the due ..... X X X X Extracts X X X X X X X X Extracts X X X X
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