9911796707
TMI Blog1997 (9) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Tribunal for drawing up a statement of case and referring the following two questions for the opinion of the High Court : "(1) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in allowing interest of Rs. 40,67,364 due from Bombay Tyre International Ltd., in spite of the fact that the deduction was actually waived off by directors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not honoured by the debtor. In the subsequent year, the amount was written off. The Assessing Officer and the Commissioner of Income-tax (Appeals) both held that so far as the assessment year in which the debit entry was made is concerned, the amount of interest will be treated as an income accrued and then it could be treated as a bad debt in the year in which it was written off. Learned co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lt at all, there cannot be a tax, even though in book-keeping, an entry is made about a "hypothetical income", which does not materialise. 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make the income which really accrued to the assessee different from what had been entered in the books of account. In the case at hand, the Tribunal has on an evaluation of relevant circumstances held that the mere unilateral act of the assessee debiting the books of account with the amount of interest, the liability for payment whereof was not accepted or agreed to by the debtor, did not amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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