2003 (9) TMI 33

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..... en paid to the creditors during the previous year relevant to the assessment year. In the case before us, the assessee itself has shown in the return that the amount of interest was payable to the creditors - This being so, Assessing Officer was justified in accepting the return as it was and making an adjustment under section 143(l)(a) of the Act disallowing the deduction claimed by the assessee
Judge(s) : N. K. SODHI., V. M. JAIN. JUDGMENT The judgment of the court was delivered by N.K. Sodhi J.-This order will dispose of two Income-tax Appeals Nos. 80 and 81 of 2002 pertaining to the assessment years 1992-93 and 1993-94 and also two Civil Writ Petitions Nos. 6182 and 6372 of 2003 which also pertain to the same assessment years, as .....

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..... re the Commissioner of Income-tax (Appeals), which was allowed on February 8, 1995. The Commissioner of Income-tax (Appeals) allowed the deduction as claimed by the assessee placing reliance on the circular issued by the Central Board of Direct Taxes to the effect that actual proof of payment could be produced subsequent to the filing of the income-tax return provided the interest had actually been paid to the creditors. The Department felt aggrieved by the appellate order of the Commissioner and filed an appeal before the Income-tax Appellate Tribunal. This appeal was allowed by the Tribunal by its order dated September 28, 2001. The Tribunal held that the Assessing Officer while processing the return had to form an opinion about the admis .....

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..... bunal would make it clear that no such plea was raised at any stage of the proceedings. It was never the case of the assessee that the creditors to whom the interest was payable did not answer the description of clause (d) of section 43B. Since no such question was ever raised, the same cannot be allowed to be raised for the first time in appeal before this court. All the authorities below proceeded on the assumption that the creditors to whom the interest was payable were public financial institutions referred to in clause (d) of section 43B of the Act. According to this section deduction can be claimed only if the interest had actually been paid to the creditors during the previous year relevant to the assessment year. In the case before .....

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