2008 (1) TMI 555

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..... tion 43B of the Income-tax Act. The assessee does not dispute this position. Since the claim was prima facie inadmissible by virtue of operation of section 43B, the Assessing Officer issued proceedings under section 143(1) (a) computing tax liability including additional tax payable under section 143(1A) of the Act. An application for rectification was rejected by the assessing officer but the Com .....

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..... he demand of additional tax under section 143(1A) of the Income-tax Act. In the return filed even though the assessee claimed deduction of Rs.16,60,165 towards interest payable to the KSIDC, it is made clear that the amount was not paid on account of instalment facility granted by the KSIDC. Consequently, the claim was not allowable by virtue of section 43B of the Income-tax Act. The assessee does .....

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..... sion of this court in CIT v. Sitaram Textiles Ltd. [2001] 248 ITR 139 and contended that the proceedings initiated under section 143(1) (a) is perfectly justified. We find that the decision squarely applies to the facts of this case because in the proceedings under section 143(1) (a) of the Act the officer has only disallowed the expenditure under section 43B of the Act. Consequently, the asse .....

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