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2002 (9) TMI 44 - HC - Income TaxThe assessee, a subsidiary of General Insurance Corporation of India is engaged in the business of general insurance. In its returns of income for the relevant assessment years, the assessee did not include the amount of interest outstanding on term and bridge loans, etc., on the plea that the debtors had defaulted in making payments and the recoveries were outstanding for more than one year. While completing the assessments, the Assessing Officer, relying on the decision of the Supreme Court in State Bank of Travancore v. CIT, held that the said interest was liable to be included in the assessee's total income. He, accordingly, included the amount of interest accrued on such accounts in the total income of the assessee. - Tribunal, vide the impugned orders, has accepted the stand of the assessee that since the profits and gains of its business have been computed in accordance with the rules contained in the First Schedule to the Act, as stipulated in section 44 of the Act, the Assessing Officer cannot make any adjustments therein. - in the absence of any finding by the Assessing Officer that the taxable income has not been computed in accordance with section 44 of the Act, no fault can be found with the view taken by the Tribunal.
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