Explanation 3C to section 43B will have retrospective effect for actual payments

Brief of the Case In the present facts of the Case the Hon’ble High Court held that Explanation 3C to section 43B is having retrospective effect from 01/04/1989. Therefore, conversion of interest amount into loan would not be actually deemed to be actual payment. Facts of the Case The assessee is engaged in the business of manufacturing Aluminium Extrusions. They had filed returns of income, showing loss of Rs.3,25,34,484/-, on 29.11.1994. A notice under Section 143(2) of the Act was issued. The assessee had debited the funded interest of Rs.85,42,788/- in its profit and loss account. In add...