Assessee extended interest on unsecured debentures payable during year to LIC Mutual Fund for another two years.\u00a0 It claimed deduction of interest payable to LIC Mutual Fund.\u00a0 Assessing Officer\u00a0 disallowed interest on ground that it had not been paid within stipulated period.\u00a0 Tribunal held that LIC Mutual Fund was a public financial institution covered under section 43B and sustained order of Assessing Officer. On appeal the Court held taht since in view of language of section 4A of Companies Act, 1956 and section 43B it was evident that LIC Mutual Fund was not public financial institution, interest on unsecured debenture payable by assessee to LIC Mutual Fund is\u00a0 not covered by section 43B and it is allowable\u00a0 as deduction. \u00a0The Tribunal has committed a manifest error of law to hold that LIC Mutual Fund is a public financial institution under section 43B. The disallowance of interest invoking the provisions of section 43B cannot be sustained.\u00a0 (AY. 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 43B : Certain deductions only on actual payment-LIC Mutual Fund purchased unsecured debentures of assessee-company-Interest on unsecured debenture payable by assessee to LIC Mutual Fund is not covered by section 43B-Allowable as deduction.[S. 37(1), Companies Act 1956, S.4A, The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 (SEBI Mutual Funds Regulations), clause 2(q), Life Insurance Corporation Act, 1956. S. 3, Indian Trust Act, 1882, S.6]<\/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-49214","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cNM","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49214","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=49214"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49214\/revisions"}],"predecessor-version":[{"id":54927,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49214\/revisions\/54927"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=49214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=49214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=49214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}