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TMI Blog2019 (1) TMI 1474X X X X Extracts X X X X X X X X Extracts X X X X ..... e Respondent : ADVS. SRI. JOSE JOSEPH, SC, FOR INCOME TAX AND SRI. P. K. R. MENON, SR. COUNSEL, G. O. I [TAXES] JUDGMENT K. Vinod Chandran, J. In the income-tax appeal, another Division Bench raised the following questions of law by order dated 05.11.2013: "1) Whether the Appellate Tribunal is justified and right in law in restoring the addition of Rs. 66,09,167/- being the balance in the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Tribunal that interest receivable account became an interest received account on the date of the agreement contrary to the conditions of the agreement and the system of accounting followed by the appellant? 5) Is the finding of the Appellate Tribunal disputed herein legally valid and sustainable on the facts and in law?" 2. All the questions of law concern one single credit made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntention was that the assessee had been following the cash system of accounting and for reason of the interest having not been received, the assessee was not liable to show it as income. However, the Tribunal found that the moment, the buyer agreed to compensate the assessee for the interest accrued in the loan accounts; up to the date of transfer, there is constructive receipt of the interest by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. At the outset, we have to notice that the figures do not tally, because the addition made by the Assessing Officer is Rs. 66,09,167/-. Further, we also notice a Certificate produced by the Chattered Accountant as seen at Annexure-F. Therein it is stated that Rs. 65,95,681.19 has been offered as interest receivable on gold loan in the account of the assessee firm for the year ending 31.03.2005. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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