INCOME TAX ACT, 1961

Section 37(1) Section 43B

Business disallowance under section 43B - Interest payable to bank - No evidence to prove payment before due date of filing of return -

Assessee claimed payment of Rs. 1,50,68,34,000 towards interest expenses, out of which interest of Rs. 2 crores was not deposited before due date of filing of return of income. Since assessee could not explain reasons for non-deposit before due date of filing return of income, AO disallowed the same and added to total income of assessee. Held: AO disallowed liabilities claimed by assessee on the ground that same had not been paid before due date of filing of return of income for the assessment year 2012-13. Assessee also could not produce any evidence regarding payment. Therefore, disallowance made by AO was justified.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2012-2013

INCOME TAX ACT, 1961

Section 40(a)(ia)

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