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TMI Blog2019 (4) TMI 1233X X X X Extracts X X X X X X X X Extracts X X X X ..... uch interest is credited in the accounts of the creditor. However, in the peculiar facts of the present case such requirement cannot be stretched to unreasonable levels. The debenture holders never claimed interest. The assessee could never pay the interest. The assessee was a sick industrial unit. Its case was before BIFR. The entries crediting the interest had to be made to comply with the mandatory requirements of law. On the principle of real income theory also the order of Commissioner (Appeals) and the Tribunal can be supported. Appeal dismissed. - INCOME TAX APPEAL NO. 1493 OF 2016, 1495 OF 2016, 1496 OF 2016 - - - Dated:- 28-1-2019 - AKIL KURESHI And SANDEEP K. SHINDE, JJ. Mr. Suresh Kumar for the Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the addition on the ground that assessee has not claimed any deduction in respect of interest on debentures without appreciating that in the P L a/c the same has been debited by the assessee? IV. Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in deleting the addition relating to non deduction of tax at source in respect of interest on debenture, without appreciating the fact that assessee has disallowed the expenditure of interest on debentures u/s. 43B and not u/s. 40a(i)(a) and in subsequent year, if the same is allowed on payment basis without considering the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in fact the assessee did not even claim the same as expenditure. The Tribunal in appeal further elaborated this aspect. Noticing that the assessee was a sick company and was before BIFR. In view of the financial condition, the assessee had not paid interest to these financial institutions. However, liability was provided only in the accounts for compliance of the requirements under the Companies Act. 5. Learned counsel for the revenue may be correct in pointing out that the requirement of deducting tax at source may arise even in a case where such interest is credited in the accounts of the creditor. However, in the peculiar facts of the present case such requirement cannot be stretched to unreasonable levels. The debenture ..... X X X X Extracts X X X X X X X X Extracts X X X X
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