TMI Blog1989 (7) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 of the Act. The Commissioner came to the conclusion that the Income-tax Officer had erroneously given a remission of interest of Rs. 1,20,373 and that the same was taxable under section 41(2) of the Income-tax Act. It appears that the respondent, along with two other concerns, namely, Chetan Swarup Vinod Swarup and Chetan Gupta and Co., had overdraft facilities with the Oriental Bank of Commerce. Approximately Rs. 15,40,000 was owed to the said bank and the respondent approached the said bank for full and final settlement by the respondent paying Rs. 12,00,000. This offer was accepted. According to the Department, the reduction of the amount from Rs. 15,40,000 to Rs. 12,00,000 included within it a remission of interest of Rs. 1,20,373 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 984, indicating that relief was towards interest and not principal ?" The Tribunal, by the impugned order, came to the conclusion that question No. 2 could not be referred because the letter of the bank dated June 4, 1984, on which reliance was sought to be placed, had not been produced before the Tribunal. With regard to the first question, the Tribunal came to the conclusion that it had followed the decision of the Supreme Court and that the conclusion of the Tribunal was a question of fact and not of law. After the dismissal of the application under section 256(1), the present petition under section 256(2) has been filed. As regards question No. 2, we find no infirmity in the order of the Tribunal. It is now settled law that a questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the question involved relates to the interpretation of the offer which was made by the assessee, the recommendation put forth to the board and the resolution passed thereon. The Income-tax Appellate Tribunal has not referred to that part of the recommendation which refers to the assessee approaching the bank for grant of concession in the interest charged. The case of the assessee appears to be that the outstanding amount of Rs. 15.40 lakhs had piled up with the application of interest. In our opinion, the Tribunal was wrong in coming to the conclusion that no question of law arose from its order. For the aforesaid reasons, we direct the Income-tax Appellate Tribunal to draw up the statement of case and refer to this court the following ..... X X X X Extracts X X X X X X X X Extracts X X X X
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