Case Law Details
Case Name : M/s. Dangat Media P. Ltd. Vs Income Tax Officer (ITAT Mumbai)
Related Assessment Year : 2007–08
Courts :
All ITAT ITAT Mumbai
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The assessee has obtained a term loan from The Mahanagar Co–operative Bank Ltd., Fort Branch. It had also obtained an over draft facility. The bank debited the term loan account periodically with interest due and thereafter credited the term loan account with interest as received by debiting the over draft account in the bank. In effect, the term loan interest was paid by debiting the overdraft account. The Assessing Officer held this to be a conversion of interest liability into a loan or advance and, hence, not liable for deduction under section 43B.
After considering the arguments of both...
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I fail to understand what will be the position if the amount is debited by Bank to CC account , which is normal practice of Banks , which always has a debit balance within the sanction limits i.e. never has a POSITIVE balance . In such situation weather the amount will be disallowed by assessing officer ?
I completely satisfied with the judgement,