1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Deduction for unprovided sum to NPA entities

ByCA Gopal Nathani

Jul 25, 2022

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.