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2024 (1) TMI 1191 - GUJARAT HIGH COURTRevision u/s 263 - accrued interest income on deposit - addition on account of notional interest @10% on deposit - HELD THAT:- In view of the concurrent findings of the fact arrived at by both the authorities and in view of the fact that there was a stipulation in the loan agreement between the assessee and the M/s. Sanman Holdings Private Limited, which was placed on record by way of a paper book, Clause-f of the loan agreement reads as under Borrower shall pay interest at the end of the financial year to the Lender at the rate of 10% per annum, subject to its financial position and profitability, on the Loan from the date of disbursement of the Loan, after deduction of applicable Tax deduction at source. Any unpaid interest at the last business day of financial year shall be treated as loan to the borrower on first business day of next financial year. In event of amalgamation, merger or demerger or takeover of borrower or any other change in its management the liability to pay interest shall cease and lender shall not be entitled to any interest from the appointed date for such event. As M/s.Sanman Holdings Private Limited to whom the assessee has advanced the loan was amalgamated with M/s. Tanti Holdings Private Limited, no interest was liable to be paid to the assessee as per the aforesaid clause. This fact is considered by both the authorities and accordingly it was held that the no interest accrued to the assessee from 01.04.2010. No substantial question of law.
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