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2018 (11) TMI 482 - AT - Income TaxAccrual of income - Addition of deemed interest on advance - advance so made become non recoverable - as stated by the assessee that the money so advanced could not be recovered - Held that:- In the present case, it is not the case that the income has in fact accrued to the assessee. In fact, the recovery of the principal amount is in doubt. Moreover, the assessee has no where claimed as business advance, it was a simple loan on which the assessee was earning interest and offering the same for tax till A.Y. 2005-06, subsequent to it loan became bad and no interest was earned. Therefore, under the peculiarity of facts and in view of the judgement of the Hon'ble Supreme Court in the case of UCO Bank Vs. CIT [1999 (5) TMI 3 - SUPREME COURT] and State Bank of Indore Vs. ITO [2002 (7) TMI 90 - MADHYA PRADESH HIGH COURT] and the decision of the coordinate bench in the case of S.N. Chitale [2010 (5) TMI 934 - ITAT INDORE], we direct the A.O. to delete the addition. - Decided in favour of assessee.
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