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TMI Blog2012 (11) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... which is engaged in the business of producing and procuring media programmes which are intended for broadcasting across media. The Assessee had a license to operate FM radio station in Inda. It was appointed by Music Broadcast Private Limited (MBPL) as an exclusive supplier for sourcing and supplying programme content for broadcasting on FM radio stations. The assessee also rendered support services to MBPL for a fixed fee. The assessee borrowed funds from Indya.com from time to time at commercial rate of interest. In turn, it entered into a loan agreement with MBPL for providing financial assistance. All the three, viz., the assesee company, MBPL and Indya.com are related concerns. Clause 8 of the assessee's agreement with MBPL provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and confirmed by the Tribunal. 3. As already stated the assessee obtained loan of Rs.116.52 crores from Indya.com and advanced loan of Rs.139.58 crores to MBPL. The assessee got waiver of loan from Indya.com to the tune of Rs.116.52 crores which amount was received by it. At the same time the amount of Rs.139.58 crores advanced by it to MBPL also became non-recoverable, which was resultantly waived by the assessee. On the above said loan of Rs.139.58 crores advanced to MBPL at the rate of 9%, the assessee did not show any income as interest. The A.O. held that interest for the previous year of Rs.8.1 crores accrued to the assessee from MBPL on such loan. The assessee waived off loan and also interest of Rs.16.97 crores receivable f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount due from MBPL in favour of another company for Rs.22 crores. When the assessee itself is valuing the right to receive such interest together with the interest already accrued, it cannot turn around to contend that the interest of Rs.8.10 crore did not accrue to it. 4. In respect of the aforesaid addition of Rs.8.10 crores sustained by the Tribunal, the AO imposed penalty on the Assessee holding that the Assessee concealed particulars of Income. The CIT(A) confirmed the order of the AO giving raise to the present appeal of the Assessee before the Tribunal in which the Assessee has filed the present application for stay of recovery of outstanding demand against the Assessee. 5. The ld. counsel for the assessee brought to our notice t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; Less: Additional refund due pursuant to the order of CIT(A) dated 22nd Nov. 2011 10,067,179 Total Refund due 14,172,951 48% Balance penalty demand 15,466,974 52% Our attention was drawn to the auditors report for the year ending 31/3/2011, wherein the auditors have brought out the fact that the assessee has wound up all its business activities in India except for settling the pending tax litigations. He, therefore, submitted that the assessee does not have any finance to meet the outstanding demand . Reliance was also placed on the decision of the Hon'ble Supreme Court in the case of CIT vs. Sarabhai Holdings Pvt. Ltd. , 307 ITR 89, wherein it was held th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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