9911796707
TMI Blog2005 (2) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... NT The judgment of the court was delivered by N. Santosh Hegde J. - The appellant, a co-operative sugar mill, filed its return of income for the assessment year 1992-93 declaring a loss of Rs. 6,95,63,045.72. While computing the said loss the appellant declared in its return a sum of Rs. 1,48,38,263.88 as interest which had accrued for the relevant assessment year which was payable to the creditors and had been debited in the profit and loss account, hence, sought for its deduction. A return claiming similar losses was also filed for the assessment year 1993-94. The Assessing Officer processed the returns filed by the appellant under section 143(1)(a) of the Income-tax Act, 1961 ("the Act") and disallowed the deduction of Rs. 1,48,38,263. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant, was from the institutions enumerated in section 43B(d), hence, disallowed the deduction. In support of this contention learned counsel pointed out from the order of the Tribunal that it had noted that the loan taken by the appellant was from Haryana Financial Corporation (HFC) which according to the appellant is wholly incorrect and the appellant had not taken any such loan from Haryana Financial Corporation. On the contrary, the loans taken by it were all from IFCI, IDBI, ICICI and Harcoo Bank and under the Act interest payable to these banks are entitled to deduction. It was contended that clause (e) of section 43B will have no application as the said provision was introduced by the Finance (No. 2) Act, 1996 with effect fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal because the appellant had failed to establish that the institutions from which it had taken the loan are those which would not fall within the institutions mentioned in clause (d) of section 43B. Therefore, the authorities below were justified in rejecting the prayer of the appellant for deduction of interest as also were justified in levying the additional tax under section 143(1A) of the Act. Having heard learned counsel and having perused the records we think there was some confusion in the mind of the Tribunal when it proceeded to consider the case of the appellant for deduction on a ground that the loan in question was taken from HFC which is a bank contemplated under section 43B(d) and since the appellant contends that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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