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2023 (7) TMI 135 - HC - Income TaxAccrual of interest income - interest accrued as due on Government securities and debentures held by petitioner - HELD THAT:- We would agree with the CIT (D/R)’s view. Income having accrued and corresponding expenditure having been reckoned on mercantile lasts, the interest income shall be taxed on accrual basis for both the years under consideration. As no reasons have been given by the Settlement Commission. In Jyotendrasinhji [1993 (4) TMI 1 - SUPREME COURT] Revenue had argued that the Commission is not even required or obligated to pass a reasoned order. The Hon’ble Apex Court held that the principle of natural justice (audi alteram partem) has been incorporated in Section 245 D itself which should mean, in our view, reasons have to be given. Reasons are live links between the mind of the decision taker to the controversy in question and the decision or conclusion arrived at. In the circumstances, on this issue we direct that the matter be sent to the Interim Board for Settlement constituted for the settlement of pending applications as contemplated under Section 245 AA of the Act. The Interim Board may pass such orders as it deems fit in accordance with law after hearing the parties.
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