2015 (2) TMI 442

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..... 28,07,432. In the course of scrutiny, A.O. noticed that assessee has charged interest on bank loans under the head "Finance Charges" at Rs. 2,41,7,645. On enquiry, assessee submitted statement of details of interest on secured loans and payments made during the year up to the date of filing return. However, A.O. obtained information from Exim Bank directly and found that there are variations between what had been claimed by assessee and what has been stated by the bank. Assessee however, agreed for disallowance of interest under the provisions of section 43B, as there is variation between the amount stated to have been adjusted by the assessee to that of amount adjusted by the bank in their books. On these adjustment A.O. considered and l....

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....etters received from the Exim Bank about various interests charged by them. The details are : Ref. No. Principal Amount Interest Charged BC/04/T601/DO 2,11,85,816.53 34,42,695.25 BC/07/T601/AO 2,06,25,000.00 32,22,656.25 BC/09/T601/AO 4,59,99,990.00 57,49,998.90 BC/04/T601/CO 78,34,000.00 12,24,062.50 BC/04/T601/DO 78,34,000.00 12,24,062.50 BC/04/T601/EO 1,83,81,110.42 27,57,166.47 3.1. These letters received by the assessee were in fact not up to 31.03.2008 but for part period. Therefore, in the ledger accounts assessee has provided the interest as under : Date Particulars Vch.Type Vch.No. Debit Credit 20.03.08 Cr. Interest payable Exim Bank Being the....

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....s of accounts, there is basis for providing an amount of Rs. 2,40,41,206 as interest payable on Exim Bank loans by the assessee. 3.3. There is no dispute with reference to the fact that assessee had paid an amount of Rs. 5,40,67,680 during the period up to 30.09.2008. Assessee has treated most of the amount repaid towards interest in its books. Therefore, no amount was disallowed under section 43B. On enquiry by the A.O. the Bank however, reported that only an amount of Rs. 83,51,790 was adjusted towards interest, whereas the balance was adjusted towards principal outstanding. There was lot of correspondence between the A.O., assessee and the Bank and the Bank was giving various clarifications/revised statements. Therefore, it can be ass....

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....re are disclosures in survey, filing of revised returns etc., which are not applicable to the facts of the case. Therefore, we do not intend to discuss all the case law. Suffice to say that the orientation of the Ld. CIT(A) seems to establish that assessee has deliberately made a false claim. We are unable to understand what is the false claim. As far as the claim of interest is concerned, there is no dispute with reference to assessee obtaining loans under various heads from Exim Bank and providing interest thereon, as per the interest rates which the A.O. also extracted in the assessment order. To that extent providing amount of Rs. 2,40,41,206.42 can not to be disputed. It is also not in dispute that assessee has paid the amounts during ....