https://www.taxtmi.com/caselaws?id=216677 The ITAT Kolkata upheld the Assessing Officer's decision to disallow the deduction claimed for interest payment converted into equity shares. The ITAT emphasized that the conversion of interest payable into equity shares does not constitute actual payment under section 43B of the Income Tax Act, distinguishing between discharging debt by transferring securities and issuing own capital. The decision aligned with the precedent set by a coordinate bench, emphasizing the necessity of actual payment for deductions, ultimately ruling in favor of the Revenue in the appeal. en-us Fri, 14 Sep 2012 00:00:00 +0530 Mon, 11 Apr 2016 12:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=216677 The ITAT Kolkata upheld the Assessing Officer's decision to disallow the deduction claimed for interest payment converted into equity shares. The ITAT emphasized that the conversion of interest payable into equity shares does not constitute actual payment under section 43B of the Income Tax Act, distinguishing between discharging debt by transferring securities and issuing own capital. The decision aligned with the precedent set by a coordinate bench, emphasizing the necessity of actual payment for deductions, ultimately ruling in favor of the Revenue in the appeal. Case-Laws Income Tax Fri, 14 Sep 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=216677