1992 (5) TMI 59

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of the case, the ITAT was correct in law in upholding the decision of the CIT(A) in deleting the addition of Rs. 4,41,385 on account of accrued interest particularly when the assessee maintained accounts on mercantile basis?" 2. Briefly stated the relevant facts are that under an agreement dt. 16th July, 1981 the assessee, a registered firm carrying on its business in food grains, had agreed to s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... . 1901 of 1984 against the MARKFED in the High Court of Delhi for recovery of Rs. 53,19,104.66 inclusive of claim for interest of Rs. 13,39,965.80 on account of outstanding bills. The suit is reported to be still pending. 4. For the year under consideration, i.e., the asst. yr. 1986-87 the ITO made an addition of Rs. 4,41,385 to the total income of the assessee on account of interest accrued on t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... li Pestonji Majov vs. Ganga Dhar Khemka AIR 1969 SC 600 and State of Madhya Pradesh vs. Nathabhai Desaibhai Patel (1972) 29 STC 104 : AIR 1972 SC 1545. Both relied upon by theCalcuttaHigh Court in the case of CIT vs. Bengal Rice Mills Co. Ltd., a reference on the proposed question would simply be of academic interest. We, therefore, hold that the proposed question, though a question of law yet is .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X