TMI Blog2017 (8) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... it to restore the issue to the file of the AO to decide the issue afresh after considering the relevant documents to be filed by the assessee and after giving due opportunity of being heard to the assessee. - I.T.A .No. 6219/DEL/2013 - - - Dated:- 11-4-2017 - SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER For The Appellant : Shri Ved Jain, CA For The Respondent : Shri Umesh Chand Dubey, Sr. DR ORDER PER SUDHANSHU SRIVASTAVA, JM This appeal has been preferred by the assessee against order dated 28/06/2013 passed by the Ld. CIT (Appeals) 19, New Delhi and pertains to assessment year 0102. 2. The brief facts of the case are that the assessee is a public limited company i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In a recent judgement pronounced by the Supreme Court in the case of Southern Technologies Ltd versus JCIT, Coimbatore (320 ITR 577), this very aspect, viz. the effect of the 1998 directions issued by the RBI under the RBI Act vis-a-vis, the provisions of the Act, have been considered at length. It is not necessary to deal with the said case on detail because of the reason that following observations in the said judgement contained in paragraph 31 thereof, we are proposing to remit the case back to the AO to reexamine the case. Para 31 of the said judgement reads as under 31. Before concluding on this point, we need to emphasise that the 1998 directions has nothing to do with the accounting treatment or taxability of income und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccrual basis. The AO was supposed to examine as to whether the loan advanced by the assessee had become non-performing asset and there was likelihood of interest income accruing thereon. To put it otherwise, it was incumbent upon the AO to apply the theory of real income and to determine as to whether that was applicable in the facts of the present case or not. The applicability of the theory of real income in the context of aforesaid RBI guidelines, is also explained in detail by the Supreme Court in Southern Technologies Ltd (supra). In these circumstances, we set aside the orders passed by the authorities below and remit the case back to the AO to determine this aspect of the matter from the aforesaid perspective, keeping in view the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of various schedules of the balance sheet revealed that the amount of debtors (older than 6 months) had decreased as compared to the preceding year. The AO also noted that the amount of claims receivable had also reduced. The AO proceeded to conclude that it was not possible to comprehend that the assessee company was not likely to get interest income in future even from non-performing assets, as termed by it for the time being. The AO further observed that the entire exercise of not recognising accrued interest and declaring it as income was a calculated attempt to reduce the burden of tax. The AO proceeded to treat ₹ 19,57,000/- as income on account of accrued interest and the assessment was completed at a loss of ₹ 5,12,714/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion or filed any evidence of any difficulty as to why these documents, which were being sought to be filed under Rule 46A, were not filed during the assessment proceedings. The Ld. AR is submitted that the issue may be sent back to the file of the AO with a direction for giving the assessee an opportunity to file the relevant documents in support of its claim. 4. The Ld. Departmental Representative opposed the plea of remand and submitted that it was already second-round before the ITAT and prayed that no further opportunities should be given to the assessee. 5. We have heard the rival submissions and have also perused the relevant documents on record. An issue arose before the Hon ble Karnataka High Court in the case of Sh. Shanker K ..... X X X X Extracts X X X X X X X X Extracts X X X X
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