TMI Blog2022 (9) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... case of the assessee is that it has not received any amount during the year under consideration either on account of principal or on account of interest income from M/s. Anjani Technoplast Ltd. and even the litigation for the recovery of loan was also going on during the year. It will not be justified in this case to charge income tax from the assessee on the interest income when neither such amount has been paid by M/s. Anjani Technoplast Ltd. to the assessee nor there is any likelihood of the payment of the same to the assessee and even the litigation is going on between the parties. Merely because, M/s. Anjani Technoplast Ltd. has deposited TDS amount that itself will not fasten liability on the assessee to pay tax on the total int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of the Learned Commissioner of Income Tax (Appeals) - 8, Kolkata, (hereinafter the ld. CIT(A) ) dt. 21/09/2020, passed u/s 250 of the Income Tax Act, 1961 ( the Act ), for Assessment Year 2012-13. 2. The assessee has taken the following grounds of appeal:- 1.) (a) That on the facts and in the circumstances of the case, Ld. CIT(A) is erred in confirming the addition of AO who treated interest income of Rs. 92,28,545/- which never accrued to the appellant. (b) That on the facts and in the circumstances of the case, the order of Ld. CIT(A) is erroneous as because he ignored the facts that for the recovery of principal loan legal suit is pending in court and applying the theory of real income, no income ever accrued to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.4,50,00,000/- on 31/03/2012. However, the assessee by that date had already filed its return of income i.e., on 29/09/2019 and by that time, there was no trace of TDS of the aforesaid amount. Therefore, the assessee did not book this TDS amount in his return of income. 4. Now, the case of the Assessing Officer is that as per Form 26AS, M/s. Anjani Technoplast Ltd., has deducted TDS amounting to Rs.9,22,855/- on the interest income of Rs.92,28,545/- which the assessee has not shown in his return of income. The Assessing Officer, therefore, made the addition of Rs.92,28,545/- into the income of the assessee being interest income on the aforesaid loan aggregating to Rs.4,50,00,000/-. 5. Whereas the case of the assessee is that M/s. An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010 Loan given by the appellant to Anjani Technoplast 2,50,00,000 2 31-03-2010 Loan given by the appellant to Anjani Technoplast 2,00,00,000 4,50,00,000 3 29-04-2010 Less: receipt of the loan money from Anjani Technoplast vide cheques no 819834 (60,257) 4 29-04-2010 Less: receipt of the loan money from Anjani Technoplast vide cheques no 819833 (4,63,716) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der consideration is the amount deposited as TDS of Rs.9,22,855/-. That, neither any other amount has been received by the assessee nor any other income has accrued for which any addition could have been made by the Assessing Officer. 7. Both the lower authorities did not agree with the aforesaid contention of the assessee and held that since M/s. Anjani Technoplast Ltd., has deducted TDS on the interest income of Rs.92,28,545/-, therefore, the amount of interest income has accrued to the assessee and, therefore, the assessee is liable to pay income tax on the same. 8. We have heard rival contentions and gone through the record. The first and foremost fact to be noted in this case is that there is no finding that any amount in cash or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been held by the Higher Courts that only the real income should be taxed and not the hypothetical income as that will place the assessee in a disadvantageous position as on the one hand, the assessee is struggling to recover its principal amount without any hope of receiving interest income thereupon and then to fasten liability on the assessee on accrual basis of the interest income for which there did not seem any probability of recovery of the same. Under these circumstances, in our view, the addition made by the lower authorities in this case of the amount of Rs.92,28,545/- is not justified. The only addition which can be made by the lower authorities is of the actual income received by the assessee by way of TDS in his account of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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