2019 (1) TMI 1474

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....R AND SRI. V. P. NARAYANAN For The Respondent : ADVS. SRI. JOSE JOSEPH, SC, FOR INCOME TAX AND SRI. P. K. R. MENON, SR. COUNSEL, G. O. I [TAXES] JUDGMENT K. Vinod Chandran, J. In the income-tax appeal, another Division Bench raised the following questions of law by order dated 05.11.2013: "1) Whether the Appellate Tribunal is justified and right in law in restoring the additio....

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....and legally unsustainable? 4) Is not the finding of the Appellate Tribunal that interest receivable account became an interest received account on the date of the agreement contrary to the conditions of the agreement and the system of accounting followed by the appellant? 5) Is the finding of the Appellate Tribunal disputed herein legally valid and sustainable on the facts and in....

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....ith the assets and liabilities of the assessee firm. The assessee's contention was that the assessee had been following the cash system of accounting and for reason of the interest having not been received, the assessee was not liable to show it as income. However, the Tribunal found that the moment, the buyer agreed to compensate the assessee for the interest accrued in the loan accounts; up ....

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....erest. This is the interest income, now made addition of, is the argument. 5. At the outset, we have to notice that the figures do not tally, because the addition made by the Assessing Officer is Rs. 66,09,167/-. Further, we also notice a Certificate produced by the Chattered Accountant as seen at Annexure-F. Therein it is stated that Rs. 65,95,681.19 has been offered as interest receivable on ....