SPECTRA REALCON LLP,KOLKATA vs. ITO, WARD-25(1), KOLKATA

The assessee in this appeal has agitated against the confirmation of addition made by the Assessing Officer u/s 43B of the Act on account of disallowance of interest paid on loan to United Bank of India.

At the outset, the ld. Counsel for the assessee has submitted that the assessee during the year had paid an amount of Rs.7017801/- to the United Bank of India, which was on account of interest. However, the auditor of the assessee in the audit report in Form 3CA has Assessment Year: 2019-20 Spectra Realcon LLP inadvertently recorded the same on account of payment towards principal amount. The ld. Counsel has further submitted that during the period from 01.09.2018 to 31.03.2019, the assessee had deposited Rs.7,43,81,102/- in the loan account out of this deposit, amount of Rs.70.17 lakh was towards interest payment and the lower authorities have disallowed the same treating the same as provision for interest, which was allegedly not paid before the due of filing of return of income.

Considering the above submissions, the issue is restored to the file of the Assessing Officer with a direction that the assessee will duly furnish the necessary certificate from the bank depicting the amount paid towards the interest before due date of filing of return of income for the assessment year under consideration. If such a certificate is furnished by the assessee, the Assessing Officer will duly consider the same and allow the claim of the assessee towards interest payment, if so found correct.

With the above observation, the appeal of the assessee is treated as allowed for statistical purposes.