Log In

| Recover password


To claim deduction of interest on actual payment it is not desirable that the assessee should have made a provision or carrying a liability thereof in its books. So much so the Tribunal in (2022] 28 ITR (Trib)-OL 125 (ITAT[Chen] held all such interest deductible u/s 43B. In this case the bank has classified loans as NPAs and not provided for any interest from March 31, 2002 and until March 31, 2015. Further a settlement is made on assignment of loans to assets reconstruction company by which the assessee paid a sum which was higher than what is the liability existing  in its books. The difference therefore were claimed u/s 43B.


Therefore section 43B entitles deduction on payment irrespective of provisioning in the books of account.


Leave a Reply

Your email address will not be published.

error: Do not copy the content of this website.