Disallowance of the interest expenditure u/s 43B(d)/(e) r.w ...

Interest Expenditure Disallowance u/ss 43B(d)/(e) Explained: A.O. Clarifies Interest vs. Principal Repayment.

February 22, 2021

Case Laws Income Tax AT

Disallowance of the interest expenditure u/s 43B(d)/(e) r.w ‘Explanation 3D’ - As observed by the A.O, as the interest debited/charged by the bank got converted into further liability wherein the existing debit balance would be further increased in the overdraft account thus, any payment of an amount towards interest would partake the character as that of repayment of the existing amount of the principal loan and not the interest claimed by the assessee. - Claim cannot be denied - AT

View Source

← Previous Next →

Disallowance of the interest expenditure u/s 43B(d)/(e) r.w ...

Interest Expenditure Disallowance u/ss 43B(d)/(e) Explained: A.O. Clarifies Interest vs. Principal Repayment.

February 22, 2021

Case Laws Income Tax AT

You may also like:

Penalty u/s 271(1)(c) - Disallowance of interest expenditure under section 43B as well as disallowance export product development expenses - Just because the assessee...

AO/CPC jurisdiction u/s 143(1) to carry out 43B(a) disallowance - The Tribunal analyzed the provisions of section 43B and relevant judicial precedents to determine the...

Disallowance u/s 14A - Disallowance made on account of interest expenditure - AO has not made any disallowance on account of interest expenditure u/s 14A of the I.T. Act...

Section 43B of the Income Tax Act disallows certain deductions for unpaid statutory dues like interest, tax, duty, etc. The key points are: Unpaid interest on loans from...

The Appellate Tribunal addressed two key issues. Firstly, it ruled that disallowance of unpaid interest u/s 43B on a loan from the World Bank, advanced by the State...

Disallowance of interest expenditure u/s 57 - nexus between the interest income vis-à-vis the interest expenditure - no nexus between the impugned income and interest...

This is a summary of an order from the Income Tax Appellate Tribunal (ITAT) covering various issues related to the allowability of deductions and expenses claimed by the...

Estimation of notional interest income for making the disallowance out of interest expenditure - The ld. AO ought to have not over emphasized about the conduct of the...

This case deals with the disallowance of expenditure u/s 14A of the Income Tax Act, which pertains to expenditure incurred in relation to exempt income. The key points...

Deduction u/s 35(2AB) for in-house Research and Development (R&D) expenses was disallowed as the assessee failed to properly explain the basis of claim and reconcile the...

Interest expenditure - assessee had availed loan at the interest rate of 12% p.a., whereas, it has advanced loan to a sister concern by charging 9% interest p.a - The...

Penalty 271(1)(c) - deduction of interest out of ‘income from other sources’ - The AO has admitted the claim of interest expenditure to the extent of interest income and...

Disallowance made u/s 43B regarding expenses claimed by the assessee. There was confusion about which limb penalty is to be levied. The disallowance confirmed by the...

Disallowance of payment u/s 43B - Explanation 3C only prohibits an assessee for recognizing the actual payment of interest by converting its interest into loan or...

Scope of Explanation C of Section 43B - Actual payment of interest or not - Issuance of debenture in lieu of Interest - since Explanation 3C was added in 2006 with the...

Quick Updates: