2015 (5) TMI 618

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....ta Jha & Mr Vaibhav Kulkarni, Advs. JUDGMENT Mr. Justice S. Ravindra Bhat (Open Court) 1. The question of law framed in this case is as follows:- "Whether the funding of the interest amount by way of a term loan amounts to actual payment as contemplated by Section 43B of the Income Tax Act, 1961?" 2. The assessee had claimed benefit of Section 43B of the Income Tax Act, 1961 in respect of con....

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....terest payable under clause (e) of this section, shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or advance shall not be deemed to have been actually paid." 4. An identical question had been framed by the Telangana and Andhra Pradesh High Court in Commissioner of Income Tax-II v. Pennar Profiles Limited (fra....

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....planation 3C appended to Section 43B of the Act. 9. As a matter of fact, from reading of Explanation 3C, in our opinion, the question as raised in the present appeals stands answered without further discussion. This provision was inserted for removal of doubts and it was declared that deduction of any sum, being interest payable under clause (d) of Section 43B of the Act, shall be allowed if such....

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....tive effect form 01.04.1989. In this view of the matter, the appeals filed by the Revenue deserve to be allowed. Accordingly, we answer the substantial question of law framed by us in favour of the Revenue and against the assessee. However, there shall be no order as to costs." 5. In light of the above development which occurred during the pendency of this appeal, the question of law framed has t....