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2005 (7) TMI 80 - HC - Income TaxInterest income – accrual/realisation of income – additions to total income - (1) Whether the Tribunal was justified in law in holding that interest of Rs. 1,16,96,604 credited to the interest suspense (suit filed) account and interest suspense (recalled) account had accrued to the assessee and was chargeable to tax for the assessment year 1980-81?" – taxability of the amount credited to (a) "Interest suspense (suit filed) account" amounting to Rs. 59,57,822 and - (b) "Interest suspense (recalled) account" amounting to Rs. 57,38,782 - in our view the amount of Rs. 59,57,822 could not have been added to the total income, as interest income - award of interest for the period subsequent to the filing of the suit till the date of decree, lies within the discretion of the court and as such the interest from the date of filing of the suit is not liable to tax each year, on the premise that the interest had continued to accrue from year to year – further, Tribunal was not justified in taxing the amount of Rs. 57,38,782.
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