TaxTMI 
TaxTMI 
TaxTMI 
2018 (1) TMI 542
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.... could not be allowed on the basis of resolution of its Board of Directors on the ground of the subsequent fact of passing of decree by the Hon'ble High Court against the Bank and the appeal filed therefrom is vitiated by reason of inter alia of consideration of irrelevant materials and/or is otherwise perverse ? 2. Whether, on the facts and in the circumstances of the case, any income by way of interest accrued to the assessee in respect of the loan given to Method ? 3. Whether, the Tribunal's direction to the Assessing Officer to re-decide the claim of the assessee, whether any interest income accrued to it, in the light of the proceedings initiated by Method against the Bank is legal and proper ?" The relevant facts are that in t....
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....subsequent actions taken by the subsidiary to realise the loan advanced by them and the assessee company would not have taken such quick decision had the debtor company been any other person other than its own subsidiary. From the facts furnished it was also found that the subsidiary could realise Rs. 3,00,000/- in the last year and also could realise Rs. 50,000/- during this accounting period from Sri Ambika Jute Mills Ltd. Further it is also general business practice to adjust interest first from any amount recovered from a debtor so that legal steps if necessary can be taken in respect of the full loan amount along with interest remaining unpaid. Hence the assessee's contention that no interest accrued to it is not accepted as the compan....
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....hing a guarantee from another nationalised bank. The Tribunal held as follows:- "From the above facts, it appears that the Ld. Commissioner did not address himself on this aspect of the effect of the judgement passed by the Hon'ble Trial Judge of the Calcutta High Court in Suit no. 290 of 1986. It appears that the order was stayed operation on the furnishing a bank guarantee by the said Punjab National Bank from another Nationalised Bank. In such a case, the question whether the non-charging of interest is justified has to be considered on these facts and by this time it is most likely that final judgment has already been rendered by the Division Bench of the Hon'ble Calcutta High Court. The Hon'ble Trial Judge of the High Court appears t....
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....der dated 10th January, 1991 gave unconditional leave to the Bank to defend the suit. According to him, this fact removed the basis of the impunged order rendering the questions referred as to be answered in favour of his client. Md. Nizamuddin, learned Advocate appearing on behalf of Revenue, pointed out that this fact of the decree having been set aside was an event that took place before passing of the impugned order but the same was not brought to the notice of the Tribunal by the assessee. Be that as it may, we find from the impugned order, the Tribunal restored the matter of interest to the Assessing Officer on the ground that C.I.T.(A) had not taken note of the subsidiary having had filed the suit and obtained a decree, which thoug....