2014 (11) TMI 1232

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....hese appeals are filed by the Revenue challenging the order of the Income Tax Appellate Tribunal 'A' Bench, Chennai, dated 10.2.2014 made in I.T.A.Nos. 695 and 696/Mds/2012 for the assessment years 2004-2005 and 2005-2006 respectively, raising the following question of law: Whether on the facts and in the circumstances of the case, the assessee is eligible for deduction under Sect....

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.... made disallowance under Section 43B of the Act, the interest amount. 2.2. The assessee preferred appeals to the Commissioner of Income Tax (Appeals), who dismissed the appeals confirming the order passed by the Assessing Officer. 2.3. Challenging the said order, the assessee preferred further appeals before the Tribunal. The Tribunal allowed the appeals filed by the assessee holding that th....

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....in respect of - (a) *** (b) *** (c) **** (d) any sum payable by the assessee as interest on any loan or borrowing from any public financial institution or a State Financial Corporation or a State Industrial Investment Corporation, in accordance with the terms and conditions of the agreement governing such loan or borrowing, or (e) any sum payable by the....

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....use which has been converted into a loan or advance shall not be deemed to have been actually paid." 5. The department declined to grant the benefit of deduction on interest paid primarily on the plea that the amount has not been actually paid and transfer of amount from one account to another account cannot be treated as paid. However, the Tribunal repelled the said plea by interpreting Sectio....