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II. Direct Tax Case Laws:
1. CIT Vs. M.M. Aqua Technologies Ltd., I.T.A. No. 110/2005 , Date of Pronouncement: 18.05.2015, High Court of Delhi
Whether
the funding of the interest amount by way of a term loan amounts to
actual payment as contemplated by Section 43B of the Income-tax Act,
1961?
Held No
Explanation
3C, having retrospective effect with effect from 01.04.1989, would be
applicable to the present case, as it relates to AY 1996-97. Explanation
3C squarely covers the issue raised in this appeal, as it negates the
assessee‟s contention that interest which has been converted into a loan
is deemed to be „actually paid‟. In light of the insertion of this
explanation, which, as mentioned earlier, was not present at the time
the impugned order was passed, the assessee cannot claim deduction under
Section 43B of the Act.
(Please click here for judgment)
2. IRCON International Ltd. Vs. DCIT, I.T.A. No. 37/2000, Date of Order: 15.05.2015, High Court of Delhi
Whether
the loss incurred on Compensation Bonds-2001 issued by GOI, governed by
the provisions of the Public Debts Act, 1944 and the Public Debt Rules,
1945, was a loss and/or it was a capital loss is legally tenable.
Held No
In the
present instance, the amounts as indicated earlier were payable for
services provided by way of projects executed by the assessee in Iraq.
The Iraqi Government‟s inability to pay due to sanctions imposed by it
and the subsequent Central Government‟s negotiating an arrangement for
its payment through bonds that were to mature in future – with interest
did not in any way alter their character or convert them into capital
assets as the assessee argues.
(Please click here for judgment)
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