TMI Blog2008 (11) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... ushya Sitaraman for the appellant. P. B. Sampath Kumar for the respondent. JUDGMENT The judgment of the court was delivered by MRS. PRABHA SRIDEVAN J. - The following questions have been raised for consideration: (i) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the penal interest claimed to have been waived by the assessee-company should be allowed as deduction? (ii) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in deleting the addition made on account of discrepancy in stock ; which was not adjusted in the accounts, but kept in abeyance without any clarification by the assessee as to treatment of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction on account of shortage of stock in the year in which it is written off." 4. Therefore, the question framed does not arise because that is not the tenor of the order of the Tribunal. Hence, this question is not answered, since it does not fall for consideration. 5. As regards the first question it is submitted by the learned counsel for the assessee that the due to revision in terms and conditions relating to levy of penal interest as decided by the board of directors by the assessee an amount of Rs. 8,18,000 was deducted. The appellant claims that there was a decision by the board to reduce the penal interest or waive the penal interest in appropriate cases. It is the assessee's case that they have been adopting cash system ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f or with regard to waiver of penal interest. The learned senior standing counsel would submit that when the petitioner's case is that, when admittedly, they are adopting cash system of accounting with regard to interest, then, the question of waiver or writing off will not arise. However, if they have actually returned any portion of the interest to the debtors during the relevant year, then that must be ascertained only by remitting the matter to the Assessing Officer. 8. In such circumstances, the matter is remitted to the Assessing Officer to ascertain whether the assessee refunded the penal interest to the debtors and if so, relief shall be granted in the year in which such amounts were refunded. The tax case (revision) is disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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