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TMI Blog2015 (5) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... red that deduction of any sum, being interest payable under clause (d) of Section 43B of the Act, shall be allowed if such interest has been actually paid and any interest referred to in that clause, which has been converted into a loan or borrowing, shall not be deemed to have been actually paid. Thus, the doubt stands removed in view of Explanation 3C. Thus in view of the Explanation 3C appended to Section 43B with retrospective effect from 01.04.1989, conversion of interest amount into loan would not be deemed to be regarded as actually paid amount within the meaning of Section 43B of the Act. - Decided in favor of revenue. - ITA No. 191/2003 - - - Dated:- 30-4-2015 - S. Ravindra Bhat And R. K. Gauba,JJ. For the Appellants Rep by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that clause which has been converted into a loan or advance shall not be deemed to have been actually paid. 4. An identical question had been framed by the Telangana and Andhra Pradesh High Court in Commissioner of Income Tax-II v. Pennar Profiles Limited (framed and decided) I.T.A. No. 289/2003 decided on 11.02.2015. After noticing the backdrop of similar facts, the High Court held as follows:- 8. In this backdrop, we have perused the provisions contained in Section 43B of the Act, in particular, Explanation 3C thereof, which was inserted by the Finance Act, 2006 with retrospective effect from 01.04.1989. This provision was inserted in 2006 and hence, this Court in Mahindra Nissans case, had no occasion to deal with the case in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006 with retrospective effect form 01.04.1989. In this view of the matter, the appeals filed by the Revenue deserve to be allowed. Accordingly, we answer the substantial question of law framed by us in favour of the Revenue and against the assessee. However, there shall be no order as to costs. 5. In light of the above development which occurred during the pendency of this appeal, the question of law framed has to be answered in favour of the Revenue. 6. Learned Counsel for the assessee relies upon the alternative submissions made noticed by the CIT (Appeals) and the ITAT contending that the interest payment actually made for the concerned Assessment Year (AY) 1993-94 at least ought to receive the benefit of the deduction under S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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