The Assessing Officer disallowed the claim holding that the liability of the assessee was contingent and that it had not been entered in its books of account and the Commissioner (Appeals) affirmed this. The Special Bench of the Appellate Tribunal held (National Agricultural Co-Operative Marketing Federation of India Ltd. v. JCIT\u00a0 (2015)) 44 ITR\u00a0 275 (SB) (Delhi) (Trib) \u00a0that there was no legally enforceable liability to interest that existed against the assessee, that where the claim to damages and interest thereon was disputed by the assessee in a court, deduction could not be allowed for the interest on such damages and that as a result of the stay order granted by the court, the liability of the assessee to pay interest remained suspended from the date of stay. On appeal, the High Court held (National Agricultural Co-Operative Marketing Federation of India Ltd. v. CIT(2017) 393 ITR 666 (Delhi)(HC)\u00a0 held \u00a0that with the award being made rule of the court by a single judge, the mere fact that the judgment and decree was stayed by a Division Bench would not relieve the assessee of its obligation to pay the interest in terms thereof to A, that the liability had commenced in the previous year in which the judgment and decree was passed by the single judge. SLP of Revenue is dismissed. \u00a0(AY.2000-01, 2001-02)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Accrued or contingent liability-Award of damages with interest-Arbitration made Rule of Court by Single Judge-Pendency of award before Division Bench-Grant of stay by Division Bench does not relieve assessee of liability to pay interest-Entitled to deduction of interest-SLP of Revenue is dismissed. [S. 145, Art. 136] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","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":""},"categories":[21],"tags":[],"class_list":["post-41369","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aLf","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=41369"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41369\/revisions"}],"predecessor-version":[{"id":41370,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41369\/revisions\/41370"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=41369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=41369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=41369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}