Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act loss |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961-Sections 43B, 141(1) (A) & 143(1) (a)-AYs 1992-93 and 1993-94-Appellant-assessee returns claiming loss-While computing the loss, it sought for deduction of interest payable to creditors-Claim disallowed by both Tribunal and the High Court-On appeal, held: both the courts erred in not giving opportunity to assessee to establish its case-Matter therefore remanded to Tribunal. Appellant-assessee, a cooperative sugar mill filed returns of income declaring loss. While computing the loss, assessee sought for deduction of the interest payable to the creditors and debited in the profit and loss account. Assessing Officer while processing the returns under Section 143(1)(a) disallowed the deduction claimed by assessee and also imposed penal additional tax. The order of Assessing authority was set aside by the Appellate Commissioner but restored by the Appellate Tribunal. Writ petitions and appeals challenging the order of Tribunal were dismissed by High Court. Hence the present appeals. The assessee contended that it is entitled to deduction of interest payable on the loans taken by it from bodies other than the financial institutions as provided under section 43B, and that the Tribunal as well as the High Court on an erroneous appreciation of fact and without giving an opportunity to the assessee to establish its case came to the conclusion that the money borrowed by the assessee was from the institutions enumerated in Section 43B (d), and disallowed the deduction. |
Judge | Hon'ble Mr. Justice N. Santosh Hegde |
Neutral Citation | 2005 INSC 74 |
Petitioner | Bhuna Coop. Sugar Mills Ltd. |
Respondent | Commissioner Of Income Tax, Rohtak And Anr. |
SCR | [2005] 2 S.C.R. 83 |
Judgement Date | 2005-02-11 |
Case Number | 1100-1101 |
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