https://www.taxtmi.com/caselaws?id=187813 The ITAT allowed the appeal, directing the Assessing Officer to modify the assessment order to allow the deduction claim of interest expenses amounting to Rs. 15,66,172 by the land development company for AY 2003-04. The decision emphasized that the interest liability accrued in the current year as per the mercantile system of accounting when the agreement was canceled and the decision to refund the earnest money with interest was made. The resolution passed by the company's Board of Directors was considered valid in determining the timing of the interest liability, overriding the Assessing Officer's disallowance. en-us Fri, 05 Sep 2008 00:00:00 +0530 Tue, 08 Nov 2016 10:12:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=187813 The ITAT allowed the appeal, directing the Assessing Officer to modify the assessment order to allow the deduction claim of interest expenses amounting to Rs. 15,66,172 by the land development company for AY 2003-04. The decision emphasized that the interest liability accrued in the current year as per the mercantile system of accounting when the agreement was canceled and the decision to refund the earnest money with interest was made. The resolution passed by the company's Board of Directors was considered valid in determining the timing of the interest liability, overriding the Assessing Officer's disallowance. Case-Laws Income Tax Fri, 05 Sep 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=187813