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TMI Blog2021 (4) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome u/s. 139(1) of the Act. The proviso clearly states that the deduction is allowable if the amount is actually paid. Therefore, we are of the view that one more opportunity may be given to assessee to substantiate its claim by filling documentary evidence before the AO. Accordingly, we remit the issue back to the file of the AO with a direction to decide the issue in dispute by examining the material which will be put-forth by the assessee before him and in accordance with law after providing an opportunity of being heard to the assessee in the matter. The assessee is directed to substantiate its claim by filing documentary evidence before the AO. Thus, the ground raised by the assessee on this issue is treated as allowed for statistic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. It was stated that out of total interest accrued for the F.Y. 2013-14 an interest amount of ₹ 278,41,52,690/- was transferred to capital work in progress. The balance amount of ₹ 33,81,76,449/- was charged to P L Account. The assessee submitted that 10.83% of total interest accrued during F.Y. 2013-14 was charged to P L Account and balance 89.17% was capitalized. It was clarified that out of outstanding interest payable as on 31.03.2014 amounting to ₹ 61,78,77,331/- an amount of ₹ 55,16,67,792/- has been paid before date of filing the return of income u/s. 139(1) of IT Act leaving unpaid amount of ₹ 13,36,34,769/-, the details of which are as under: 1. LIC of India 10, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Financial Year 2013-14 to Profit Loss A/c and Capital Work in progress in the ratio of 10.83:89.17. Out of the unpaid interest of the unpaid interest of ₹ 13,36,34,769/- an amount of ₹ 1,44,73,851/- was charged to Profit Loss A/c based on the % of assets capitalized and the balance unpaid interest of ₹ 11,91,60,918/- was debited to Capital Work to Progress as the assets were under construction/erection. He submitted that as per the provisions of section 43B of the Income Tax Act, 1961, interest expenses are allowed as deduction only on payment basis and any unpaid interest claimed as expenses shall be disallowed in computation of Total Income. Accordingly, unpaid interest expenses of ₹ 1,44,73,851/- debited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny failed to pay the interest amount as detailed above of ₹ 13,36,34,769/- on or before the due date of filing the return of income u/s. 139(1) of the Act. The proviso clearly states that the deduction is allowable if the amount is actually paid. Therefore, we are of the view that one more opportunity may be given to assessee to substantiate its claim by filling documentary evidence before the AO. Accordingly, we remit the issue back to the file of the AO with a direction to decide the issue in dispute by examining the material which will be put-forth by the assessee before him and in accordance with law after providing an opportunity of being heard to the assessee in the matter. The assessee is directed to substantiate its claim by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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