TMI Blog2008 (4) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... concluded that income had accrued to the assessee and that the debt was not a sticky debt and liable to tax - 689 of 2006 - - - Dated:- 23-4-2008 - MADAN B. LOKUR and MANMOHAN SINGH JJ. Y. K. Kapoor for the appellant. R. D. Jolly for the respondent. JUDGMENT The judgment of the court was delivered by Madan B. Lokur J.- The Revenue is aggrieved by an order dated September 30, 2005, passed by the Income-tax Appellate Tribunal, Delhi Bench "G", in ITA Nos. 3998/Del/2003 and 4025/Del/2002 relevant for the assessment years 2001-2002 and 1998-99, respectively. 2. The assessee had given an intercorporate deposit on September 22, 1995, to M/s. Padmini Polymer Ltd. (for short "PPL") for a period of 90 days with interest at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer noted that the asses-see had changed its method of accounting only in respect of the interest accrued from PPL from a mercantile system to a cash system. For all other purposes, the assessee continued to maintain the cash method of accounting. 7. In the first instance, in view of the finding that has been arrived at by all the three authorities below, to the effect that the debt was not a sticky debt, we are not inclined to interfere since no substantial question of law arises for consideration and no perversity has been shown in the view taken. 8. This apart, learned counsel for the assessee has submitted on the merits, relying upon CIT v. Ferozepur Finance P. Ltd. [1980] 124 ITR 619 (P H), that income-tax is levied on in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt over a period of time but it has also received a part of the interest. The Tribunal has further noted that in addition to the above facts, there is nothing to suggest that the financial condition of PPL was such that it was unable to pay its debts. There is nothing on record to suggest that PPL was insolvent on the contrary, its shares were quoted above par in the market. Taking all these facts into consideration, the Tribunal came to the conclusion that income had accrued to the assessee and that the debt was not a sticky debt. On the material available, we cannot disagree with this conclusion. 13. Learned counsel for the assessee finally relied upon the assessment order passed by the Assessing Officer relevant to the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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