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TMI Blog2022 (9) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance of overdraft interest of Rs 45,09,669/- The CIT(A) failed to seed that debiting of interest and increase in debit balance in account is not actual payment as defined in explanation 3d to section 43 B. 2. The learned CIT(A) has erred in deleting the disallowance made towards discount of Rs 1,47,02,391/-. The learned CIT(A) should have realized that the assessee had produced only computer generated bills which are neither signed by the assessee nor by the client. The learned CIT (A) did not appreciate the facts and circumstances of the case indicated in the assessment order and remand report." 2. The brief facts of the case are that the assessee company is engaged in the business of travel management, ticketing and allied busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st by the banks which are much more than the interest debited by the banks. On the said observation, the Ld.CIT(A) has deleted the disallowance made under section 43B of the I.T. Act for Rs.45,09,669 on account of interest payments to the banks. Aggrieved by the said order, the Revenue is in appeal before us. 3. With regard to ground 1, the Ld.DR has contended that the assessee has failed to comply with the provisions of section 43B(e) and Explanation 3D thereto and that the said interest was paid after the due date of filing of return of income under section 139(1) and also that the assessee is not entitled to the claim on the ground that the said interest expense towards OD account pertains to scheduled bank which is not admissible as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est debited in assessee's account for each month, which are calculated as under:- Axis Bank Rs. 4,68,657/- Yes Bank Rs. 4,91,430/- Saraswat Bank Rs. 23,41,844/- Total .......... Rs.33,01,931/- It is also stated by the assessee that interest for the OD account is debited by the bank month to month and that in case of Axis Bank and Yes Bank, the OD accounts were converted into deposit account from January, 2011 and November,2010, respectively which shows that the interest upto the said date was paid much before the deposits. Similarly, in the case of Saraswat Bank interest paid was to the tune of Rs.23,41,844/- on OD account whereas the interest received on fixed deposits for Rs.8,71,00,000/- was Rs.25,95,463/- which is eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the customer discount as per the software. It is stated that while booking the ticket, the billing details are automatically sent to accounts' software as pre-determined wherein bills are created for the customers. The assessee states that there is a client - master relationship in the software and bills are automatically generated and transmitted through emails to the clients. The assessee is not into the practice of preparing physical bills and that the computer generated bills are neither signed by the assessee nor by the client. Such bills do not contain the addresses of the clients and also all the payments to such booking were through cheques. The assessee further stated that when the bill is issued and net amount is received fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er's account and the payment received by the assessee is only on the net amount which does not doubt the passing of discount to the customers. The Ld.CIT(A) has also held that the Assessing Officer has failed to rebut the submission of the assessee by not bringing anything on record to show that the assessee has received any amount over and above the net amount billed to the customers. The Ld.CIT(A) has also laid emphasis that the transaction was only through cheque and that it is a common practice on the part of the agents to pass out part of commission received from the airlines to the customers. 8. From the above observation, it is evident that the Assessing Officer had not denied the authenticity of the vouchers or invoices filed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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