SHREE SYNTEX Vs. DEPUTY CIT

JUDGEMENT

(1.) In the ITAT, Jodhpur Bench S.R. Chauhan, J.M. &; B.L. Khatri, A.M

(2.) It is very pertinent to note that ultimately the assessee had not to pay the interest and the interest which was provided earlier in the relevant year, i.e., assessment year 1988-89, had to be reversed. The assessee accordingly credited the interest relating to these three parties, namely M/s Rajasthan Processors (I) Ltd., Bhilwara, M/s Orient Syntex Ltd. and M/s Shruti Synthetics Ltd., and consequently the entire deduction claimed and allowed earlier stood taxed in a later year. This was duly assessed by the assessing officer in assessment year 1991-92 vide order under section 143(3) dated 30-9-1992 (PB 6). Thus, the assessee already suffered tax on this part of income and it is clear that the assessee was not responsible for paying interest in assessment year 1988-89.

(3.) The assessee thus was not liable to make any deduction under section 194A and hence there was no default as under section 271C to this extent.