TMI Blog2018 (9) TMI 1824X X X X Extracts X X X X X X X X Extracts X X X X ..... ent years under consideration etc. The legal issue i.e. to be decided on the right to recover the interest income by the assessee during the pendency of suit in Bombay City Civil Court - Decided against revenue - ITA No. 1988/MUM/2017 Assessment Year: 2012-13 - - - Dated:- 28-9-2018 - Shri Shamim Yahya And Shri Ram Lal Negi, JJ. Revenue by : Shri Chaudhary Arunkumar (DR) Assessee by : Shri Y.N. Thakur (AR) ORDER Ram Lal Negi, This appeal has been filed by the revenue against the order dated 16.12.2016 passed by the Commissioner of Income Tax (Appeals)-5 (for short the CIT(A), Mumbai, for the assessment year 2012-13, whereby the Ld. CIT(A) has allowed the appeal filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued on outstanding debt, without appreciating the fact that the assessee acquired the right of suit as per assignment deed was entitled to recover the debt along with interest and cost of suit as per deed of assigned right:. 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in deleting the addition on account of interest of ₹ 1,11,46,409/- accrued on outstanding debt, without appreciating the fact that interest on debt which was receivable by the Bank of Baroda, was now receivable to the assessee and as the assessee is following mercantile system of accounting the assessee was required to offer interest income on debt on accrual basis. 4. At the outset, the Ld. counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have heard both the parties and perused the orders of the Revenue Authorities as well as the paper books filed before us. On hearing both the parties and on perusal of the relevant material placed before us, we find, there is no dispute on the facts about the assessee acquiring the debts from the Bank of Baroda for a sum of ₹ 84,97,400/- with the borrowed funds, the loan creditors have not paid interest income to the either bank or to the assessee, assessee has not recognized the income for all the assessment years under consideration etc. The legal issue i.e. to be decided on the right to recover the interest income by the assessee during the pendency of suit (No. 105 of 1986) in Bombay City Civil Court. In this regard, we have per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re such a decree is silent with respect to the payment of further interest [on such principal sum] from the date of decree to the date of payment or other earlier date, the Court shall be deemed to have refused such interest and a separate suit therefore shall not lie . 12. We have also examined the interpretation of the said section and the relevant explanation is already incorporated in the above paras of this order. We have considered the cited judgment of the Hon ble Jurisdictional High Court in the case of Maharashtra State Financial Corporation Ltd. (supra). Further, we have also considered the reasoning given by the CIT (A) in paras 4.1.4 and 4.1.5 of his order. Considering the above, we are of the opinion, the conclusion d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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