{"id":10306,"date":"2015-05-27T14:17:17","date_gmt":"2015-05-27T08:47:17","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=10306"},"modified":"2015-05-27T14:17:17","modified_gmt":"2015-05-27T08:47:17","slug":"cit-vs-m-m-aqua-technologies-ltd-delhi-high-court-s-43b-expl-3c-conversion-of-outstanding-interest-into-a-loan-does-not-amount-to-an-actual-payment-of-the-interest-and-so-deduction-for-the-inter","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/cit-vs-m-m-aqua-technologies-ltd-delhi-high-court-s-43b-expl-3c-conversion-of-outstanding-interest-into-a-loan-does-not-amount-to-an-actual-payment-of-the-interest-and-so-deduction-for-the-inter\/","title":{"rendered":"CIT vs. M. M. Aqua Technologies Ltd (Delhi High Court)"},"content":{"rendered":"<p>The High Court had to consider the question: \u201c<em>Whether the funding of the interest amount by way of a term loan amounts to actual payment as contemplated by Section 43B of the Income-tax Act, 1961?<\/em>\u201d HELD by the High Court:<\/p>\n<blockquote><p>Explanation 3C to s. 43B was inserted for removal of doubts and it was declared that deduction of any sum, being interest payable under clause (d) of Section 43B of the Act, shall be allowed if such interest has been actually paid and any interest referred to in that clause, which has been converted into a loan or borrowing, shall not be deemed to have been actually paid. Thus, the doubt stands removed in view of Explanation 3C. This provision was considered by the Madhya Pradesh High Court in <strong>Eicher Motors Limited v. Commissioner of Income Tax<\/strong> to hold that in view of the Explanation 3C appended to Section 43B with retrospective effect from 01.04.1989, conversion of interest amount into loan would not be deemed to be regarded as actually paid amount within the meaning of Section 43B of the Act. Explanation 3C squarely covers the issue raised in this appeal, as it negates the assessee\u2019s contention that interest which has been converted into a loan is deemed to be \u201cactually paid\u201d. In light of the insertion of this explanation, which, as mentioned earlier, was not present at the time the impugned order was passed, the assessee cannot claim deduction under Section 43B of the Act.\n<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>In view of the Explanation 3C appended to Section 43B with retrospective effect from 01.04.1989, conversion of interest amount into loan would not be deemed to be regarded as actually paid amount within the meaning of Section 43B of the Act<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/cit-vs-m-m-aqua-technologies-ltd-delhi-high-court-s-43b-expl-3c-conversion-of-outstanding-interest-into-a-loan-does-not-amount-to-an-actual-payment-of-the-interest-and-so-deduction-for-the-inter\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,5],"tags":[],"class_list":["post-10306","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-high-court","judges-r-k-gauba-j","judges-ravindra-bhat-j","section-43b","counsel-bishwajit-bhattacharyya","court-delhi-high-court","catchwords-actual-payment","genre-domestic-tax"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/10306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=10306"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/10306\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=10306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=10306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=10306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}