Law:

Section:

Section 36(1)(vii) of the Income-tax Act, 1961 - Bad debts - Assessment year 1997-98 - Assessee claimed that interest income reflected in its books of account would not be assessable to tax as same was reflected in books of account only to pressurize loanees to make payment and, in fact, no income had accrued to it - Assessing Officer rejected assessee's contention and included interest component to its income - On appeal, Commissioner (Appeals) allowed assessee's claim on ground that in an earlier assessment year, similar income reflected as interest was not taken into consideration while determining quantum of tax payable - Tribunal upheld findings of Commissioner (Appeals) - Whether when deduction referred to by Commissioner (Appeals) in his order had not been shown to have been made under same contract, under which loan was earlier extended, and it had also not been shown to have been made in respect of a contract, terms and conditions whereof were identical to contract under which loan in question had been extended, claim of assessee could have been upheld under rule of res judicata - Held, no - Whether, on facts, matter was to be remitted back to Assessing Officer for consideration within parameters of section 36(1)(vii) - Held, yes FACTS In the relevant assessment year, the assessee's books of account showed certain amount of interest payable by the debtors. The assessee claimed that said interest was not assessable to tax as it had been reflected in the books of account only to pressurize the loanees to make the payment and it was not an income which had accrued to the assessee. The Assessing Officer rejected the contention of the assessee and included amount of interest to its returned income. On appeal, the Commissioner (Appeals) allowed the assessee's claims on the ground that in an earlier assessment year, similar income reflected had not been taken into consideration while determining the quantum of tax payable. On the revenue's appeal, the Tribunal upheld the findings of the Commissioner (Appeals). On the revenue's appeal : HELD A perusal of the order of the Commissioner (Appeals) revealed that the matter had earlier come up for consideration for…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492