2019 (1) TMI 1342

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....der passed by the Tribunal dated 16.02.2019 in M.P.No.330/Chny/2017 which was filed by the assessee to recall the order dated 28.07.2017. 2. Heard Mr.A.S.Sriraman, learned counsel for the appellant and Ms.R.Hemlatha, learned Senior Standing Counsel for the respondent/Revenue. 3. The assessee filed the appeal before the Tribunal challenging the assessement of interest income based on the tax deduced at source (TDS) effected for the broken period, namely, up to the end of the financial year relating to the assessment year under consideration. 4. The assessee's case is that the Assessing Officer as well as the Commissioner of Income Tax Appeals overlooked the terms and conditions of the deposits especially fixed deposits with the ....

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.... is wrongly confirmed overlooking the terms and condition of the term deposits. Further, the assessee contended that the right to receive interest would get crystallized at the expiry of the term of the deposit and even in the accrual system of accounting there is no right to receive such interest just because the interest amount is credited to the account of the assessee/suspense account. There is no right to withdraw such amount during the term/period of the deposits. 9. Further the assessee pointed out that the crediting of interest in the assessee's suspense account could not be equated to constructive receipt and the constructive receipt theory should be presumed only based on the terms of the time deposit. Further the right to ....

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....essee, in our considered view, needs to be looked into because the matured amount along with interest has been offered to tax during the relevant assessment year. Thus for the above reason we are inclined to remand the matter to the Assessing Officer for fresh decision. 13. Accordingly, the appeal of the assessee is allowed and the matter is remanded back to the Assessing Officer for fresh decision, after affording an opportunity to the assessee. The Assessing Officer shall consider the reconciliation offered by the assessee and take a fresh decision on merits and in accordance with law. Consequently, the Substantial Questions of Law are left open. ============= Document 1 1. STATE BANK OF Opening balance of cumulative deposits 0....