2013 (1) TMI 398

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.....P. BHATT, J.   This appeal has been admitted on the following questions of law: I. Whether on the facts and in the circumstances of the case, the Tribunal is justified in holding that section 43B of the Income Tax Act will not be attracted where the payment of Statutory liability of interest to State Finance Corporation is claimed to have been made by book adjustment and not by actu....

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....he subsidy amount, the amount of interest has been adjusted by Bihar State Financial Corporation. 3. The revenue's contention is that in view of the language of Section 43 B of the Act, the deduction can be allowed on the loan in case of "actual payment" of the amount mentioned under various clauses under Section 43B and for interest, the relevant clause is Clause (d) under Section 43B of the A....

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....on loan to Bihar State Financial Corporation. Hence, disallowance under Section 43B of the I.T. Act in all the three accounting years were not correct.   5. It appears that revenue has misconstrued the word "actual payment". For making "actual payment" it is always not necessary that one should, if having a credit entry, also have a debit entry, then he should receive the "actual payment" ....