TMI Blog1999 (7) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 32AB of the Income-tax Act, 1961? The Commissioner of Income-tax raised three questions in Income-tax Application No. 71 of 1999 which are as under: "1. Whether, the Appellate Tribunal is right in law and on facts in confirming the order-passed by the learned Commissioner of Income-tax (Appeals) and deleting the interest of Rs.76,64,412 on account of interest free advance made to the sister concerns, other than for business purposes ? 2. Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the learned Commissioner of Income-tax (Appeals) holding that the provision of section 43B of the Income-tax Act, 1961, is not applicable? 3. Whether, on the facts and in the circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the provisions contained in the Investment Deposit Account Scheme, 1986. The Bank of Baroda, failed to transmit the amount to the IDBI, as instructed by the assessee, it cannot be said that the assessee has failed in making payment. It is not the case that the Bank of Baroda did not receive such instructions. It may be that because of the banker's negligence, the amount was not transmitted in time. As a matter of fact, realising the fact that the amount has not been transmitted under instructions, correspondence ensued between the assessee and the Bank of Baroda and between the Bank of Baroda and the IDBI. On considering the fact that the mistake was committed by the Bank of Baroda and it agreed to pay the interest to the IDBI, on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do not find any reason to interfere with. So far as question No. 2 raised in Income-tax Application No. 71 of 1999 is concerned, Mr. Naik has rightly not pressed this question stating that the same is not necessary in view of the fact that the High Court has rejected the contention of the Department. So far as question No. 1 in Income-tax Application No. 71 of 1999 is concerned, it relates to the order passed by the Commissioner of Income-tax (Appeals) deleting interest of Rs. 76,64,412 on account of interest-free advances made to the sister concerns. In our opinion, the same is based on the facts of the case. Since in the assessment year 1987-88, the assessee was granted benefit, as there was a change in the system of accounting year. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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