TMI Blog1999 (1) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to the petitioner in C. No. 1241-II/42 to 44 of 1988 dated November 2, 1989, passed under section 264 of the Income-tax Act, 1961, and consequently direct the first respondent to grant relief in respect of interest claimed for the assessment years 1981-82, 1982-83 and 1983-84. The assessee is a company. Learned counsel for the petitioner has argued that for the assessment year 1981-82, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that it was out of time. It has also been stated that the interest can be said to be payable only when it was debited in the assessee's or in the bank's books. In the revision the Commissioner has observed that "in fact it is seen that the bank had originally agreed to waive the interest on the loans. It is noticed from the bank's letter dated October 11, 1989, that they had not yet de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner that as soon as the bank has charged the interest, the petitioner has rushed to the income-tax authorities claiming that it is allowable expenditure. I agree with the contentions of learned counsel for the petitioner. The findings of the Commissioner that the petitions were out of time is set aside. The Commissioner of Income-tax, first respondent herein, is directed to pass appropriate o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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