When interest was converted into loan or borrowing/advance, it shall not be deemed to have been actually paid

Brief of the Case:

In the cited case, ITAT inter-alia held in the light of the main provisions of section 43B read with Explanations 3C and 3D that the interest payable to banks and other financial institutions can be allowed as deduction only ‘if such interest has been actually paid’ and second is that where such interest ‘has been converted into loan or borrowing/advance, it shall not be deemed to have been actually paid. Hence, it is crystal clear that deduction of interest u/s 43B cannot be

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