https://www.taxtmi.com/caselaws?id=251800 The High Court of Bombay ruled in favor of the revenue, denying a partnership firm's claim for a higher depreciation rate based on bank guarantees for pending Central Excise duty payments. The Court upheld the applicability of section 43B of the Income Tax Act, emphasizing that deductions can only be claimed upon actual payment, not through bank guarantees. The Court's decision highlighted the importance of actual payment over guarantees in claiming deductions under the Income Tax Act, affirming that bank guarantees do not equate to payment until the actual funds are transferred. en-us Wed, 20 Aug 2014 00:00:00 +0530 Mon, 29 Sep 2014 07:59:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=251800 The High Court of Bombay ruled in favor of the revenue, denying a partnership firm's claim for a higher depreciation rate based on bank guarantees for pending Central Excise duty payments. The Court upheld the applicability of section 43B of the Income Tax Act, emphasizing that deductions can only be claimed upon actual payment, not through bank guarantees. The Court's decision highlighted the importance of actual payment over guarantees in claiming deductions under the Income Tax Act, affirming that bank guarantees do not equate to payment until the actual funds are transferred. Case-Laws Income Tax Wed, 20 Aug 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=251800