TMI Blog2014 (10) TMI 790X X X X Extracts X X X X X X X X Extracts X X X X ..... n up, the tax may be payable - where the income can be said not to have resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might have been made in the books of account – thus, the order of the Tribunal is upheld – Decided against revenue. - Tax Appeal No. 204 of 2012 - - - Dated:- 16-8-2012 - V. M. Sahai And N. V. Anjaria,JJ. For the Appellant : Mrs. Mauna M. Bhatt JUDGMENT (Per : Honourable Mr. Justice N. V. Anjaria) This appeal under section 260A of the Income Tax Act, 1961, preferred by the Revenue is directed against order dated 30.09.2012 of the Income Tax Appellate Tribunal, Ahmedabad Bench `A', in Income Tax Appeal No.3075 of 2010. 1.1 The appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts of the parties to whom the advances were made, in order to substantiate its explanation. 3.2 In the appeal, the CIT(A) held in favour of the assessee, by recording his findings in the order dated 19.08.2010 as under: 5. ... the appellant, on it's own volition, has not charged any interest on the total deposits made to the five sister concerns, amounting to ₹ 3,29,64,266/-. It is not the A.O.'s case that appellant has borrowed the funds and interest bearing funds have been advanced to the five sister concerns, without charging interest. The appellant has not claimed any interest in its profit and loss account. In such situations, the notional interest income of ₹ 39,86,000/- could not be brought to tax. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vy on income. No doubt, the Income-tax Act takes into account two points of time at which the liability to tax is attracted, viz., the accrual of the income or its receipt; but the substance of the matter is the income. If income does not result at all, there cannot be a tax, even though in book-keeping, an entry is made about a hypothetical income , which does not materialize. Where income has, in fact, been received and is subsequently given up in such circumstances that it remains the income of the recipient, even though given up, the tax may be payable. Where, however, the income can be said not to have resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might, in certain circu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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