TaxTMI 
TaxTMI 
2015 (12) TMI 890
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....ance u/s 43B of the Act, in the facts and circumstances discussed by the AO . (ii) The ld. CIT(A) has passed a perverse order in accepting the claim of the assessee that the payment of interest liability of SASF & NICL had been made by reversal accounting entires. (iii) The ld. CIT(A) has erred in overlooking the fact that the AO had allowed Rs. 1,26,01,711/- out of claim of interest of Rs. 2,46,84,514/- being interest paid to SASF and NISL (and not out of Rs. 3,94,67,254-), as specified in para 3 of the assessment order dated 30-12-2009. (iv) The ld. CIT(A) has erred in ignoring the fact that the deduction for this interest had not been claimed by the assessee in the return of income, and in fact the assessee had itself disallowed....
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....cress-cross entries, effectively there was no impact on the taxable income of such year in such years. It was further stated that during the year under consideration, a settlement was arrived with the above originations and there was remission of interest liability to the extent of Rs. 39467254/-, out of total interest payable to such concerned. In the statement of accounts, the appellant has shown book profit at Rs. 66915318/-, which is inclusive of credit entry of such remission of interest. In other word, it is claimed that since the interest liability of Rs. 39467254/- were neither claimed nor allowed in the earlier assessment years, therefore, due to the above accounting treatment, the book profit of the appellant had notionally increa....
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....he above documents and after verification of the computation of income for A.Y. 2005-06 & 2006-07 and also of the current year, I found the claim of the appellant is factually correct, as such. In this regard it is noted that the interest payable to SASF and NICL for the above periods, which were claimed and disallowed u/s. 43B are as under:- I. A.Y. 2005-06 -- Interest payable of Rs. 17636804/- to SASF claimed in the books but not paid and disallowed u/s. 43B of the Act. II. A.Y. 2006-07 - Total interest of Rs. 39467254/- payable to SASF (Rs. 17663804/-) and NICL (Rs. 21803450/-), claimed in the books but not paid and disallowed u/s. 43B of the Act. III. The working of total interest liability, the actual amount paid in this regar....
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....e provision of Sec. 43B as such. In the light of the above facts and circumstances, I find that the AO has erroneously or inadvertently overlooked the accounting treatment given by the appellant, (i.e. remittance of interest entries of Rs. 39467254/- of earlier years), which has increase the book profit of the appellant in notional manner, as discussed above and ignored the reversal entire made in this regard to nullify such effect. Accordingly the claim of the appellant in this regard is found justified and the AO is directed to reduce the book profit of the appellant to the extent of Rs. 39467254/-. Consequently this ground of appeal is upheld.'' Since the ld. CIT(A) has given detailed account of the nature of the entries, its ....
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....acts and circumstances of the case, we find no infirmity in the order of the ld. CIT(A) which is upheld on this issue. Hence, Ground Nos. (i) to (iv) of the Revenue are dismissed. 7. Apropos second ground raised as Ground No. (v) in Revenue's appeal, respectfully following the judgments of Hon'ble Rajasthan High Court in the case of CIT vs. Jaipur Vidyut Vitran Nigam Ltd. and CIT vs. State Bank of Bikaner and Jaipur and also judgement of Hon'ble Delhi High Court in the case of CIT vs. Aimi Ltd. (supra), the ld. CIT(A) is justified in deleting the addition as the assessee had actually paid the PF & ESI contributions before due date of filing of the return which has not been disputed by the ld. DR at the time of hearing. In vie....