https://www.taxtmi.com/caselaws?id=457102 ITAT Chennai allowed the assessee's appeal regarding disallowance of prepaid finance charges. The tribunal held that once actual payment is made towards expenditure, different treatment in books of accounts cannot deprive the assessee from claiming deduction in the year of payment. Relying on SC precedents in Taparia Tools Ltd and Kedarnath Jute Mfg. Co Ltd, the tribunal ruled that book entries are irrelevant for determining deductibility. Since finance charges were actually incurred and paid during the assessment year, deduction should be allowed despite being treated as deferred revenue expenditure in books. The tribunal set aside CIT(A)'s findings and directed AO to delete the additions. en-us Wed, 27 Sep 2023 00:00:00 +0530 Thu, 05 Sep 2024 21:28:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457102 ITAT Chennai allowed the assessee's appeal regarding disallowance of prepaid finance charges. The tribunal held that once actual payment is made towards expenditure, different treatment in books of accounts cannot deprive the assessee from claiming deduction in the year of payment. Relying on SC precedents in Taparia Tools Ltd and Kedarnath Jute Mfg. Co Ltd, the tribunal ruled that book entries are irrelevant for determining deductibility. Since finance charges were actually incurred and paid during the assessment year, deduction should be allowed despite being treated as deferred revenue expenditure in books. The tribunal set aside CIT(A)'s findings and directed AO to delete the additions. Case-Laws Income Tax Wed, 27 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457102