2013 (11) TMI 579

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ompany. But the assessee has not paid any interest to the Government but claimed the deduction pertaining to the interest under section 36(1)(iii) of the Act. The A.O. has disallowed the same by observing that the interest has not been actually paid – Held that:- After discussing number of case laws observed that the assessee is entitled for the deduction under section 36 (1)(iii) of the Act, as t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s-allowance of provision for interest liability on loans received from the State Government U/s 36 (1) (iii) of the I. T. Act, 1961. 2. Whether on the facts and in the circumstances of the case, the learned Income Tax Appellate Tribunal was right in law in holding the said unpaid liability was an allowable deduction u/s 36 (1) (iii) of the Income Tax Act when such deduction is allowable only on .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ssessee. After hearing the learned counsel and on perusal of record, it appears that the identical issue has come up before this court. The group of appeals, leading Income Tax Appeal No. 139 of 2007 (for the assessment year 2003-04). This Court vide judgment and order dated 21.12.2011 has adjudicated the same by observing that : "Undoubtedly, the assessee is following the mercantile system of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X