TMI Blog1990 (4) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act") : "Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in maintaining the order of the Commissioner (Appeals) deleting the addition of Rs. 36,25,303, representing interest on sticky advances for the assessment year 1974-75 ? " The assessment year involved is 1974-75 for which the relevant accounting period ended on December 31, 1973. The facts of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. The assessee preferred an appeal to the Commissioner (Appeals) who allowed the claim of the assessee following the Board's instructions dated October 6, 1952, and deleted the entire amount of Rs. 36,25,303. Being aggrieved, the Revenue came up in appeal before the Tribunal. The Tribunal, following its earlier order dated June 4, 1985, in the assessee's own case in Income-tax Appeals N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing it as a bad debt or irrecoverable interest but keeping it in suspense account was repugnant to section 36(1)(vii) read with section 36(2) of the Income-tax Act, 1961. The concept of real income could not be so read as to defeat the object and the provision of the statutory enactment. Even if in a given circumstance, the amount might be taken to the interest suspense account for accounting purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of State Bank of Travancore [1986] 158 ITR 102, the Supreme Court clearly pointed out that these circulars in question were executive in character and were in the nature of concessions and, as such, the same could not alter the provisions of the law. The principle of contemporaneous exposition could not be applicable on the basis of the circulars which were issued for the purpose of giving c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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