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2013 (7) TMI 424 - HC - Income TaxBad debts - Whether the ITAT was right in holding that even though the assessee has not treated the principal as irrecoverable, the interest accrued on the loan advanced to another public limited company need not be included in the total income for the A.Y.1992-93 - reading of the order of the Calcutta High Court shows the contrary to the assertion of the assessee that the debtor company could not make the amount on account of its difficult financial position, on the reference to the BIFR, the debtor company had taken a stand as to the solvency position – in the absence of any material to substantiate that the interest on the borrowed amount could not be recovered - it is difficult to accept the case of the assessee that on the mere score of reference to the BIFR - the recovery of interest or accruing of interest on the debtor company had become too difficult and bad to be realized – appeal allowed in favour of department.
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