TMI Blog2015 (4) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... at as per the reading of loan agreement, the interest amount has very much accrued and the liability has crystallized. In this view of the matter, we hold that order of the authorities below is liable to be set aside and assessee's claim be allowed - I.T.A. No. 463/Mds/2015 And C.O. No.33/Mds/2015 - - - Dated:- 8-4-2015 - Shri Chandra Poojari, Accountant Member And Shri V. Durga Rao, Judicial Member For the Appellant : Shri. N. Rangaraj, IRS, CIT. For the Respondent : Shri R. Viswanathan, C.A. ORDER PER CHANDRA POOJARI, ACCOUNTANT MEMBER The appeal by Revenue and Cross -objection by assessee are directed against the order of Commissioner of Income Tax (Appeals)- III, Chennai dated 20.10.2014. The Revenue h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .5 We have heard both the counsels and perused the relevant records. It will be worthwhile here to refer to the clause 1.2 of article I of the loan agreement which is relevant to the issue under consideration, as under: Interest:- TWICL shall pay to GOTN and IL FS the respective interest on the principal amount of the Term Finance availed of and outstanding from time to time at the rate as mentioned in the Schedule I hereto and payable on the interest payment date. TWICL shall not be required to pay interest up to the expiry of the moratorium period being 5 years from the operation date. Interest not paid shall be accrued as arrears and added to the principal outstanding at the end of every calendar quarter. The interest shall be calculat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eemed to have been actually paid. 2.7 From a reading of the above, it is clear that the said clause pertains to sum payable by the assessee as interest on loan or borrowing from any public financial institution. Public Financial Institution which has been referred to in Explanation (4) of the Income Tax Act which is defined in Section 4A of the Companies Act, 1956 read as under:- (1) Each of the financial institutions specified in this subsection shall be regarded for the purposes of this Act, as a public financial institution, namely:- (i) The Industrial Credit and Investment Corporation of India Limited, a company formed and registered under the Indian Companies Act, 1913 (7 of 1913): (ii) The Industrial Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oan agreement, the interest amount has very much accrued and the liability has crystallized. In this view of the matter, we hold that order of the authorities below is liable to be set aside and assessee's claim be allowed. 5. The DR could not point out any distinguishable features in the above quoted order of the Tribunal and neither he could bring any material on record to show that the above order of the Tribunal was varied in appeal by any higher forum. We, therefore, respectfully following the above quoted order of the Tribunal, confirm the order of the CIT(A) and dismiss the grounds of appeal of the Revenue. 3. Being so, respectively following the above order of the Tribunal, we are inclined to dismiss the appeal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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