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TMI Blog2019 (12) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of learned CIT(A) who has confirmed the addition made by the Assessing Officer in consequential order passed in view of the order passed by learned CIT u/s 263 of the Act. 3. At the outset, Learned A. R. invited our attention to appeal in I.T.A. No.390/Lkw/2017 and submitted that there is a delay of 19 days in filing the appeal and it was submitted that the assessee has filed application for condonation of delay and the reason for delay in filing the appeal before Hon'ble Tribunal has been explained in the condonation application. It was submitted that in the interest of substantial justice the delay may be condoned. 4. Learned D. R. had no objection to the condonation of delay. Keeping in view the substantial justice and bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/2015. Our specific attention was invited to para 12 of such letter where the Assessing Officer had asked for copy of PAN, ITR and copies of accounts of unsecured loan creditors. Our further attention was invited to reply to this notice placed at pages 35 & 36 of the paper book and our specific attention was invited to para 12 of such letter where the assessee had enclosed as per Annexure-6, the copy of confirmed accounts of unsecured loans and we were further taken to pages 43 to 60 of the paper book where the copies of ledger accounts of unsecured loan creditors were placed and where the fact of interest having been being credited without deduction of TDS was placed. In view of these facts and circumstances, it was argued that the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee was required to deduct tax on interest paid by him. In the present case, we find that the Assessing Officer, vide notice u/s 142(1) dated 22/12/2014, placed at pages 61 to 65 of the paper book, required the assessee vide para 5 that if any expenditure on account of interest on borrowed loan has been claimed then it may be shown as to why such interest may not be disallowed. Vide para 7, again the assessee was required to file datewise and confirmed copy of interest account including the complete address and PAN to whom the interest was paid. The assessee, vide letter dated 13/01/2015, vide para 10, had submitted the ledger accounts of unsecured loans as per Annexure- 6, a copy of which is placed at pages 43 to 68 of the paper b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xt of section 40(a)(ia) of the Act the term "payable" would include "amounts which are paid during the previous year". 5. Where any High Court decides an issue contrary to the 'Departmental View', the 'Departmental View1 thereon shall not be operative in the area falling in the jurisdiction of the relevant High Court. However, the CCIT concerned should immediately bring the judgment to the notice of the CTC. The CTC shall examine the said judgment on priority to decide as to whether filing of SLP to the Supreme Court will be adequate response for the time being or some legislative amendment is called for. 6. The above clarification may be brought to the notice of all officers." 8.1 In the present case, the assessee is cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. CIT, (1966) 61 ITR 371, 373 (Mad)]. Even under the mercantile system of accounting, a liability incurred cannot be entered in the accounts as an expenditure unless the liability has become an ascertained sum of money. Until ascertained, the liability no doubt exists, but proceedings have yet to be taken some way or other to determine the exact amount. A vague liability to make a payment cannot be entered into accounts and, in that state, it cannot be said to have been "incurred", so as to count as "paid" within the meaning of section 43(2) [Kanpur Tannery Ltd. v CIT, (1958) 34 ITR 863 (All)]. Also see, Addl. CIT v. Kale Khan Mohammad Hanif, (1978) 114 ITR 812 (MP). In view of the definition of the expression 'paid' in section 43(2), t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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