Unpaid Interest to Scheduled Co-op Bank Disallowable Under Section 43B: ITAT Mumbai

DCIT Vs Prithvi Realtors and Hotels Private Limited (ITAT Mumbai) Core Issue:- Whether interest payable on overdraft facility from Punjab and Maharashtra Co-operative Bank, which remained unpaid till the due date of return, is disallowable u/s 43B for AY 2017-18, particularly where the co-operative bank was included in the Second Schedule of the RBI Act, thereby qualifying as a Scheduled Bank. Facts of the Case:- The assessee company engaged in real estate development had availed an overdraft facility from Punjab and Maharashtra Co-operative Bank and incurred interest expenditure of Rs. 14.29 ...