TMI Blog1982 (12) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the Tribunal was right in holding that the interest on loan to M/s. Central Cotton Mills Ltd., was liable to be included in the assessment on the due basis and not on the basis of realisation and was, therefore, right in sustaining the addition of Rs. 55,000, being interest on the said loan calculated on the due basis." The facts relevant to this case and as found by the Tribunal are as foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal, in its order for the assessment year 1971-72, has stated as follows: " The next controversy centres round the sum of Rs. 55,000, being the interest on the loans advanced by the assessee to the Central Cotton Mills Ltd., which the assessee did not bring into the account of the year, but which the lower authorities added in computing the total income. The stand of the assessee was that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim made for this assessment year. Undoubtedly, the interest had accrued during the year. There is no case that the assessee had demanded the interest during the period or had given it up. Nor had the debtor company asked the assessee for any remission or suspension of liability. Nor is there any evidence that the debtor company had switched over to a system of accounting other than mercantile. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of this fact it cannot be said that the interest on the loan continued to accrue even in this year. In fact, the Tribunal in its order in the earlier year has disallowed the assessee's claim on the ground that the Government notification was published only in 1972. On behalf of the Revenue reliance has been placed on the decision of the assessee's case in the earlier assessment years ; but th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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