2014 (12) TMI 62

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....d in the business of manufacturing of cement. The assessee filed its return of income for the Assessment Year 1994-95 on 14.11.1994, declaring total income loss of Rs. 451.71 Lakhs. While passing the order under Section 143(1)(a) of the Income Tax Act, the Assessing Officer made an addition of Rs. 5,12,62,300/in respect of accrued interest on the term loan from financial institutions, which were debited to the profit and loss account, but were not paid to said financial institutions. The Assessing Officer acting on assessee's letter dated 10.08.1995 rectified the order under Section 143(1)(a) by reducing the disallowance under Section 43B to the extent of Rs. 61,04,000/. 2.1. Being aggrieved by the order of the Assessing Officer, the ass....

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.... 5. On the other hand, learned advocate for the Respondent-assessee has supported the impugned order of the ITAT and submitted that the view taken by the authorities below is just and proper and no interference is required to be called for by this Court. 6. We have heard learned advocates appearing for both the parties and perused the material on record. The ITAT while deciding the appeal in paragraph No.5 has observed as under:" 5. After going through the materials on records and arguments of ld. Departmental Representative we find that Assessing Officer made addition under Section 143(1) (a) in respect of accrued interest on term loans from financial institutions, which were debited to profit and loss account, but were not paid to....