2013 (4) TMI 316

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....order of the Ld. Commissioner of Income Tax (Appeals)-X, New Delhi dated 05.10.2012 pertaining to assessment year 2006-07. 2. The ground raised is that Ld. Commissioner of Income Tax (A) erred in upholding the addition of Rs. 1,04,204/- on account of interest on Non Performing Assets not recognized by the appellant. 3. On this issue Assessing Officer observed that assessee company has not re....

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....e Jurisdictional High Court in the batch of cases in I.T.A. No. 552 of 2005 in the case of C.I.T. vs. M/s Vasisth Chay Vyapar Ltd. vide order dated 29.11.2010. In this case the brief facts of the case were as under:- "To state in brief, the assessee herein had advanced certain Inter Corporate Deposits (ICD) to M/s Shaw Wallace Company. The interest thereupon could not be received by the assesse....

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....as deleted the aforesaid interest income." 7. The Hon'ble Jurisdictional High Court has decided the issue as under:- "17. In this scenario, we have to examine the strength in the submission of learned counsel for the Revenue that whether it can still be held that income in the form of interest though not received had still accrued to the assessee under the provisions of Income Tax Act and wa....

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.... Reason was adverse financial circumstances and the financial crunch faced by Shaw Wallace. So much so, it was facing winding up petitions which were filed by many creditors. These circumstances, led to an uncertainty in so far as recovery of interest was concerned, as a result of the aforesaid precarious financial position of Shaw Wallace. What to talk of interest, even the principal amount itsel....