2016 (5) TMI 208 - SCH - Income Tax

Interest payment claimed as deduction despite being called a 'provision'; treated as paid liability, disallowance overturned for assessee.

Whether an interest provision could be disallowed as an unascertained liability was determined by applying SC precedent holding that the Act permits ... Binding precedent - matter covered by earlier decision - Taparia Tools Limited v. Joint CIT - dismissal of appeal on precedentBinding precedent - dismissal of appeal on precedent - Whether the appeal could be maintained where the matter was covered by this Court's earlier decision in Taparia Tools Limited v. Joint CIT . - HELD THAT: - The Court held that the present matter is answered by the earlier decision in Taparia Tools Limited v. Joint CIT and, having found the issue squarely covered against the Revenue by that precedent, declined to entertain the contrary contention. No further adjudication on the merits was undertaken because the binding precedent disposed of the controversy.Appeal dismissed as the matter is covered by the earlier decision.Final Conclusion: The appeal was dismissed by the Supreme Court because the controversy was squarely covered against the Revenue by the Court's earlier decision in Taparia Tools Limited v. Joint CIT . The Supreme Court of India dismissed the appeal, stating that the matter is covered against the Revenue by a previous judgment in Taparia Tools Limited v. Joint CIT [2015] 7 SCC 540 : [2015] 372 ITR 605 (SC). The judges were A. K. Sikri and Rohinton Fali Nariman, JJ.