(Per : HONOURABLE MR.JUSTICE V. M. SAHAI) 1.0 We have heard Mr. M. R.Bhatt, learned senior counsel for the revenue in this tax appeal.
2.0 This tax appeal has been filed on the following proposed questions.
“[A] Whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs.39,50,000/ made on account of disallowance of interest expenses pertaining to subsequent previous years?
[B] Whether the Appellate Tribunal is right in law and on facts in directing the Assessing Officer not to include the preoperative interest expenses and prior period expenses while recomputing the Book Profit under section 115JB?”
3.0 The Commissioner of Income Tax (Appeal) has allowed the appeal of the assessee relying on the decisions of the Apex Court in Calcutta Discount Co. Ltd. vs. CIT 37 ITR 1 (SC). The tribunal has confirmed the order of the Commissioner of CIT(A) that liability of entire amount has been accrued/incurred on the date of acceptance of agreement and its payment has been made as per section 43B of the Act before the due date of filing of return of income. Therefore, the disallowance of Rs.39.50 lacs is bad in law. The Commissioner of Income Tax (Appeal) as well as Income Tax Appellate Tribunal have rightly deleted the disallowance.
4.0 We are in agreement with the view taken by aforesaid two authorities. We do not find any substantial question of law arises for consideration of this Court. This tax appeal is accordingly dismissed.
[V. M. SAHAI, J.] Amit [N. V. ANJARIA, J.]