2014 (1) TMI 18

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....or the assessee submitted that one of the common issues involved in the appeals of the Revenue for A.Y. 2002-03 and 2003-04 as raised in ground no.7 and 3 was relating to the deletion by the ld. CIT(A) of the addition made by the AO on account of interest receivable on advance paid by the assessee to M/s Ceat Tires ltd. He submitted that the bench at the time of hearing expressed the view that the agreement between the assessee and Ceat Ltd. in regard to the terms and conditions for charge of interest should be looked into and as the agreement had not been seen by the lower authorities nor was called for/placed on record by the AO, the issue for both the years would require necessarily to be remanded for denovo decision in accordance with l....

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.... of the revenue's case on this issue was that interest was receivable by the assessee on advance paid to M/s CEAT Tyres Ltd. as per the agreement as held by the AO and the income on account of such interest therefore had accrued to the assessee during the year under consideration. He further submitted that there was nothing on record to show that the interest so accrued was agreed to be waived and decision to that effect was taken by the assessee-company in the year under consideration. When the ld. Counsel for the assessee pointed out that no opportunity was given to the assessee in this regard to establish its case of such waiver, the bench expressed the view that the matter should go back to the Assessing Officer to ascertain as to wheth....

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....e relevant year unless such right is waived by him as a result of revised agreement or understanding. If there is such waiver in the relevant year, the income so waived could not be accrued to the assessee in that year and accordingly the same could not be assessed to tax in his hands in that year. As rightly submitted by the ld. D.R., nothing has been brought on record in the present case either before the authorities below or even before us to show that interest chargeable by it on the advance to M/s CEAT Tyres Ltd. as per the agreement was actually waived in the year under consideration. The ld. Counsel for the assessee on the other hand has submitted that no opportunity was given by the authorities below to the assessee to establish its....