9911796707
TMI Blog2012 (12) TMI 1225X X X X Extracts X X X X X X X X Extracts X X X X ..... re directed against the order of the Commissioner of Income-tax(Appeals)- XII at Chennai, passed on 16.02.2012, and arise out of the assessment completed under sec.143(3), read with sec.154 of the Income-tax Act, 1961. 2. In the appeal filed by the Revenue, the issue is whether the amount of interest payable by the assessee on NCDC loan is hit by sec.43B of the Act or not. 3. In the accounts furnished by the assessee, interest on NCDC loan has been shown as payable. The corresponding expenditure has been claimed as deduction. The Assessing Officer, while computing the assessee s income, held that NCDC is a Financial Institution as provided under sec.43B and interest amount not actually paid before due date of filing of return shall no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Government of India in terms of sec.4A of the Companies Act, 1956. If the assessee has taken the loan directly from NCDC, the case would have been covered by sec.43B. Now, in the present case, Central Government had allowed the Government of Tamilnadu to go for open market lending for raising funds to help the sugar mills in Tamilnadu. The Government of Tamilnadu has in fact availed the loan in the light of approval granted by the Government of India. After availing such open market loan from NCDC, Government of Tamilnadu distributed the amount among various sugar mills in Tamilnadu. As per the directions issued by the Government of Tamilnadu, the loans have to be utilized for certain specific purposes. The Government of Tamilnadu al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business income of the assessee and allowed set off of brought forward losses from that gross amount. Because of this grossing up, the assessee lost its claim of deduction available under sec.80P. The assessee is otherwise entitled for deduction under sec.80P as far as the income from other sources is concerned. 8. We do not approve the method followed by the Assessing Officer as well as the Commissioner of Income-tax(Appeals). The assessee is entitled for deduction under sec.80P. When sec.80P is applied, income from other sources is reduced. First sec.80P has to be applied and thereafter alone the Assessing Officer has to look into the question of set off of brought forward business loss which could be set off against the current years ..... X X X X Extracts X X X X X X X X Extracts X X X X
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