TMI Blog1992 (1) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Appellate Tribunal, Delhi Bench 'C', in pursuance of the direction issued by this court under section 256(2) of the Income-tax Act, 1961: " 1. Whether, on the facts and circumstances of the case, there was material before the Tribunal to hold that there was no agreement to charge interest from the parties ? 2. Whether, on the facts and circumstances of the case, the Tribunal was legally jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith interest up to the period ending June 30, 1969, whereafter no interest was charged nor credited nor was the same claimed by the debtor-company as deduction in the computation of its own income. Similarly, advances were made in favour of J. P. Srivastava and Sons Pvt. Ltd., Kanpur, and interest was charged on the advances made only up to June 30, 1969, whereafter again no interest was charged i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terial on the record to show that any agreement, whether written or otherwise, existed between the assessee and the debtor-companies for payment of interest. The Tribunal further held that the interest had neither legally nor actually accrued in favour of the assessee and, consequently, the assessee rightly did not show the same in its return. The Tribunal went on to observe that unless the Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial on the record, it is apparent that the assessee and the debtor-companies were sister concerns and that the assessee had stopped charging interest from the debtor-companies with effect from June 30, 1969, for the simple reason that the debtor-companies had run into financial straits and, consequently, the assessee had stopped charging any interest on the advances. The debtor companies had als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is admittedly not a money-lender. In the case of money-lenders, perhaps, such a presumption might be raised. No such presumption is, however, available in the case of other assessees, there being no material pointing to a contrary conclusion. In the premises, we answer both the questions in the affirmative, in favour of the assessee and against the Revenue. The assessee will be entitled to its ..... X X X X Extracts X X X X X X X X Extracts X X X X
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