TaxTMI 
TaxTMI 
2013 (7) TMI 424
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....n advanced to another public limited company need not be included in the total income for the assessment year 1992-93?" The assessee follows the mercantile system of accounting. While completing the assessment, the officer found that as in the assessment year 1991-92, the assessee had not included the accrued interest for the loan advanced to M/s. Bowreah Cotton Mills on the ground that the said company had become a sick company and its case was referred to the BIFR. The officer found that the assessee treated the loan amount as good account. However, as regards the interest accrued thereon, the assessee did not offer it for assessment. The officer pointed out that in respect of the assessment years 1990-91 and 1991-92, a part of it had be....
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.... as good for recovery, there was no justification in excluding the accrued interest from assessing the said income for the year under consideration. Learned counsel for the assessee, however, placed before us the orders of the Calcutta High Court on the reference made by the BIFR for winding up of the company. A perusal of the order dated May 16, 2003, placed before us shows that the company court therein ordered winding up of the company based on the recommendation of the BIFR. However, the debtor company went on appeal before the Division Bench, wherein it was con-tended that the order of winding up based on the recommendation of the BIFR was bad in law. Admitting the appeal, the Division Bench of the Calcutta High Court granted stay of ....