2015 (4) TMI 1332

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....nce of interest payable claimed to the tune of B11,46,45,038/-". The Cross-objection filed by assessee is in support of the order of the Commissioner of Income Tax (Appeals). 2. We have heard both the parties and perused the material on record. A similar issue was considered by the Tribunal in assessee's own case in ITA Nos.236 & 237/Mds/2014 and Cross Objection Nos. 25 & 26/Mds/2014 vide order dated 06.06.2014, wherein the Tribunal held as under:- We have heard both sides, perused the materials on record and gone through the orders of authorities below. The stand taken by the Revenue is that the interest to be paid by the assessee had not been crystallized in the year under consideration. We find that the issue involved in this appeal....

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....uent to the end of the period stated above, TWICL shall pay to GOTN and IL&FS interest on the respective principal amount of the term finance outstanding from time to time quarterly in arrears in each year on the interest payment date." 2.6 From a reading of the aforesaid, it is quite apparent that interest has accrued and the payment thereof has been postponed. It is only upon accrual that this interest is being added to the principal and the principal amount is consequently increasing. The reference of the learned Commissioner of Income Tax (Appeals) to provisions of Explanation 3(c) of Section 43B(d) of the Act is not relevant. Section 43(B) which deals with certain deductions to be only on actual payment includes vide clause (d), "an....

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....Industrial Development Bank of India, established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964); (iv) The Life Insurance Corporation of India, established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956); (v) The Unit Trust of India, established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963). (vi) The Infrastructure Development Finance Company Limited, a company formed and registered under this Act.; (2) Subject to the provisions of sub-section (1), the Central Government may, by notification in the Official Gazette, specify such other institution as it may think fit to be a public financial institution: Provided that no institution shall be so speci....