Case Law Details
Hon’ble Allahabad High Court in the case of Ashok Auto Sales Ltd v/s CIT , Agra in Income Tax Appeal No. 351/2013 vide order dated 23.11.2017 has held that Vector shipping is not the correct preposition of law as held by Honb’le SC in the case of M/s Palam Gas Service vs. Commissioner of Income Tax Civil Appeal No.5512 of 2017 decided on 03.05.2017
The impugned appeal was filed by the appellant against the order of Income Tax Appellate Tribunal, Agra Bench dated 19.07.2013 for the assessment year 2009-10 raising the following substantial questions of law :-
“(a) Whether in view of the decision given by this Hon’ble Court in I.T.A. No.122 of 2013 (C.I.T. vs. M/s Vector Shipping Services (P) Ltd) and the use of the word ‘payable’ in Section 40 (a) (ia), the order of the Tribunal below sustaining the addition of the amounts paid as interest by the appellant under Section 40 (a) (ia), without examining its scope and extent is legally sustainable?
(b) Whether on a true and proper interpretation of the word ‘payable’ occurring in Section 40 (a) (ia), the scope of the Section is confined to the amount which remains outstanding (or to be paid) as on the last date of balance sheet (at the end of the year) and sums which are already paid cannot be added to the assessee under this provision ?”
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