2007 (8) TMI 68

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....d to as "the Act"), arising out of the order of the Income-tax Appellate Tribunal, Allahabad, dated June 7, 1999. It has been admitted vide order dated December 8, 2006, on the following substantial question of law: "Whether, on the facts and in the circumstances of the case and the material available on the records, the Income-tax Appellate Tribunal was legally justified in confirming the orde....

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....ducts Pvt. Ltd., Delhi, to which a sum of Rs. 8,38,793 had been advanced. During this year it had made a further advance of Rs. 1,00,000 and had received interest of Rs. 6,933 from the said company. The Assessing Officer while passing the assessment order had added the notional interest income of Rs. 1,59,980. Feeling aggrieved the respondent-assessee preferred an appeal before the Commissioner of....

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.... the assessee and the said company that no further interest would be charged and in order to recover the amount the company will sell its land to the respondent-assessee for a sum of Rs. 12,00,000 and after adjusting the debit balance remaining amount shall be paid. 7 It is to be remembered that earning of the income whether actual or notional has to be seen from the view point of a prudent ass....