| Court: | Income Tax Appellate Tribunal Pune Bench |
| Head Notes: | Interest on Taxes not to be disallowed under section 43B of the income tax act. In the absence of statutory provisions under the income tax Act that is in absence of specific entry under clause (a) of section 43B of the income tax Act, the interest liability incurred by the assessee on account of delay in discharge any statutory liability such as taxes and duties and other levies, the assessee, such interest although is entitled for deduction u/s 37(1) of the Act but cannot be subjected to disallowance under section 43B(a) of the Act. While coming to such thought provoking conclusion the tribunal is of the view that the decision of the supreme court rendered in context of deductibility cannot be robotically applied for the purpose of provisions of section 43B(a) of the income tax Act. |
| Law: | Income-Tax Act |
| Section(s): | 43B of the Income tax act - |
| Counsel(s): | Adv loya rajesh |
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| Uploaded By | CA Tejal Saha |
| Date of upload: | April 24, 2024 |
The decision has not followed the set judicial precedents laid by various high courts in India. It is unclinical to allow interest on taxes and duties without actual payment.
The provision of section 43B the Income Tax Act deals with disallowance. The disallowance of Interest on loans are provided for by separate clause but not the interest on any taxes which are allowable otherwise under the statute.
The tribunal founded its decision on three member Kolkata High Court decision and Delhi High court as well.
There seems no decision from Bombay High Court on the issue.