No penalty merely for Disallowance of Bonafide Deduction Claim

Shanti Chemsteel Pvt. Ltd. Vs DCIT (ITAT Delhi) In course of proceeding before learned first appellate authority, a query was raised as to why the amount should not be disallowed under Section 43B of the Act as it was not actually paid during the year. From the explanation of the assessee and the material placed on record, it is discernible that interest was charged to assessee’s OD account by the bank and the assessee had increased its liability to that extent. It is also the submission of the assessee that the OD account limit had been reduced to the extent of interest debited by the bank....