TMI Blog2002 (10) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee till the decision of the court is arrived at and no such interest amount would be chargeable to tax in the hands of the assessee. In the premises, we answer the question in the affirmative and against the Revenue. - - - - - Dated:- 29-10-2002 - Judge(s) : R. K. PATRA., CH. P. K. MISRA. JUDGMENT R.K. PATRA J.-This is a reference under section 256(1) of the Income-tax Act, 1961, in which at the instance of the Revenue, the Income-tax Appellate Tribunal, Cuttack Bench, has referred the following question for the opinion of this court: "Whether, on the facts and in the circumstances of the case, and on a correct reading of section 34 of the Civil Procedure Code read with section 31 of the Orissa State Financial Corporatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid amount of Rs. 1,14,82,064 to its income. Being aggrieved by the order of assessment, the assessee preferred appeal before the Commissioner of Income-tax (Appeals) who, by order dated March 14, 1986, set aside the assessment with certain directions to the Assessing Officer to examine the matter and make fresh assessment. In obedience to the order of the Commissioner, the Assessing Officer made a fresh assessment under section 143(3) read with section 251 of the Income-tax Act on February 8, 1988, reiterating his previous finding. The assessee again preferred an appeal objecting to the assessment before the Commissioner of Income-tax (Appeals) but without any success. Thereafter, it carried the appeal before the Income-tax Appellate Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh 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 circumstances, have been made in the books of account. We may at this stage profitably refer to the judgment of the Allahabad High Court in CIT v. Uttar Pradesh Financial Corporation [1992] 194 ITR 282. In that case, the assessee was the Uttar Pradesh Financial Corporation and the point involved in that case is similar to the one which arises for our consideration. By referring to section 34(1) of the Code of Civil Procedure, the court held that award of interest from the date of suit till the date of decree is within the di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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