TMI Blog1993 (9) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the case are that the assessee has advanced large sums to Messrs. Citric India Ltd. While completing the original assessments, the Income-tax Officer held that interest at 12 per cent. on the sums advanced to Messrs. Citric India Ltd. accrued to the assessee and included it in the computation of income ignoring the assessee's contention that no such income accrued to it because of disputes with the said company. On February 13, 1975, a branch office of the assessee in Rajmahal Palace was searched and a slip of paper was seized. On this slip, interest due from Messrs. Citric India Ltd. for various periods from April 1, 1965, to June 30, 1972, was noted under the heading "Interest due from Messrs. Citric India Ltd. at 12 per cent." The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown in respect of the financial years 1965-66 and 1966-67 and, therefore, the entries in respect of the remaining assessment years should be considered as interest earned by the assessee. Learned counsel for the assessee has submitted that in D. B. I. T. References Nos. 314, 315 and 316 of 1985 decided on April 13, 1988 (CIT v. S. M. S. Investment Corporation [1988] 173 ITR 393), this court has held H that a presumption can be raised but such presumption is a rebuttable presumption and relates to a question of fact. It was held in that case that the Tribunal has held that the presumption stands duly rebutted and this being a question of fact, the application was rejected accordingly. We have considered the matter. In accordance with s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that simple interest at 12 per cent. was to be charged. A copy of page No. 107 of serial No. 7 of annexure "A" of the panchnama dated February 13, 1978, which was seized from the branch office of the assessee-company, Rajmahal Palace, Jaipur, was annexed along with the statement of case. In the head line of the said paper it is mentioned "interest due from Messrs. Citric India Ltd. at the rate of 12 per cent" The Income-tax Appellate Tribunal has agreed with the conclusion arrived at by the Commissioner of Income-tax (Appeals). In the present matter, it has also taken into consideration that the debtor did not credit any interest in the books of account from the financial year 1968-69 onwards and declined to pay the interest. The finding wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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