9911796707
TMI Blog2001 (7) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner (Appeals)-II, Hyderabad, dated September 25, 1997. The background facts leading to the filing of this appeal be stated briefly as under : The assessee filed its return of income declaring total loss of Rs. 3,25,74,046. The Assessing Officer, while processing the return under section 143(l)(a) of the Act, has noticed that as per Form No. 3CD report, interest payments to financial institutions were debited to the profit and loss account but Rs. 89,90,523 remained unpaid. Since the assessee itself disallowed Rs. 55,90,832 on the account in the computation of income, the Assessing Officer has disallowed the remaining amount of Rs. 33,99,691 under section 43B in the absence of any proof of payment. In the first appeal before the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entions which were put forth before the learned Tribunal. The only point that arose before the authorities below and the learned Tribunal and that arises before us is whether the assessing authority is justified in disallowing an amount of Rs. 33,99,601 claimed by the assessee as accrued interest under the provisions of the Act. Before adverting to this question, it is pertinent to notice the relevant provisions of section 43B of the Act. "43B. Certain deductions to be only on actual payment.-Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of-. . . (d) any sum payable by the assessee as interest on any loan or borrowing from any public financial institut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that unless the allowance claimed by the assessee is actually paid, is not liable for deduction under section 43B of the Act. It is ail admitted fact in this case that the interest amounts in question, in accordance with the terms arid conditions of the agreement governing such loan between the financial institution arid the assessee, are payable in the succeeding assessment year and not in the assessment year 1996-97. When by the said agreement, the assessee has not even incurred the liability in relation to the amounts of interest in question for the assessment year 1996-97, there is no basis for the appellant-assessee to claim that those interest amounts have accrued during the previous year under consideration. By force of the first pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
