TMI Blog1999 (10) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... past. (2) The Commissioner(A)-VI is not justified in not allowing the change of method for accounting of interest. (3) The Commissioner(A)-VI was unjustified in not allowing rectification of the assessment by ITO to the extent that the addition of Rs. 11,000 as receivable interest was on higher side keeping in view the rate of interest charged in the past years. The interest @ 12 per cent on Rs. 74,720 worked out to Rs. 8,966 instead of Rs. 11,000 added by the ITO and confirmed by the Commissioner(A)-VI. (4) The appeal is within time, the order dt.24th July, 1986 being received on11th Aug., 1986. (5) It is, therefore, prayed that relief as deemed to be appropriate be granted to the assessee. (6) The appellant further craves leave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see did not receive cash from Bhatia Sugar Traders would not be sufficient to exclude the amount of interest from the total income. She, therefore, upheld the addition made by the ITO. 5. The learned counsel for the assessee stated before us that upto the asst. yr. 1984-85, the income from interest was being taxed on accrual basis. However, for the asst. yr. 1985-86, no interest was provided as principal as well as interest was not likely to be received. According to him, the loan had become sticky. He has filed in the paper book a copy of the account of the assessee in the books of M/s Bhatia Sugar Traders for the accounting periods from1st April, 1984to31st March, 1986. He pointed out that for the asst. yr. 1985-86 no interest was credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se before the Supreme Court the accounts of the parties had been debited, where as in the case of the assessee there was no such debit by the assessee and, therefore, the same were distinguishable on facts. We do not find any merit in this ground of appeal either. The writing of books of accounts is in the hands of the assessee. He may choose to debit account of the parties or not, is his sweet will. This will not affect the accounting system that the interest had become due to the assessee. If the loan had really become bad, the assessee should have claimed it as a bad debt and written off in the books of account. This has not been done. We sustain the order of the CIT(A) on this account. We shall now take up the appeal of the Revenue bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the claim was not verifiable and disallowed the salary claimed by the assessee. She has further held that it is a purely legal issue and, therefore production of Smt. Bhatia was not necessary. She also observed that Smt. Sabina Bhatia would have naturally confirmed whatever her husband had stated before the ITO and in any case, it was not likely that she would have given any evidence of the salary payment being not genuine to the ITO, which would have been against the wishes and directions of her husband. She also observed that the salary in the case of Ashok Bhatia had been assessed by the same ITO on substantive basis and, therefore, the ITO was shut out from not allowing the claim in the case of the assessee. The disallowance made by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
