Tribunal held that the assessee had categorically stated before Assessing Officer that it had paid interest to M.P. Finance Corporation being a State entity. In such a situation, Assessing Officer should have verified from M.P. Finance Corporation regarding payment of interest .Since Assessing Officer failed to make necessary enquiries, impugned disallowance was to be deleted. (AY. 2010 -11)
Manish Films (P.) Ltd. v. ITO (2019) 175 ITD 121 (Indore) (Trib.)
S. 43B : Deductions on actual payment–Interest–Disallowance made without making enquiries from State Finance corporation was deleted.