1995 (10) TMI 36

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...., the Tribunal referred the following three questions for the opinion of this court under section 256(1) of the Income-tax Act, 1961 : " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in deleting the inclusion of Rs, 51,88,655 being interest, commitment charges and guarantee commission on accrual basis in the assessment year 1976-77 ? (2) Whether....

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....ance of realisation of these amounts, the debtors being chronic defaulters. The Income-tax Officer added back these amounts on the ground that these amounts should be treated as income accrued to the assessee as the assessee was following the mercantile method of accounting. On appeal, the Commissioner of Income-tax (Appeals) deleted the additions following the decision of the Appellate Tribunal ....

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....assessee came up for consideration before this court in T. C. Nos. 319, 688 and 689 of 1982 (CIT v. Tamil Nadu Industrial Investment Corporation Ltd. (No. 1) [1996] 218 ITR 616) for the earlier assessment years. In the abovesaid tax cases, by a judgment dated November 10, 1994, this court following the judg ment of the Supreme Court in the case of State Bank of Travancore v. CIT [1986] 158 ITR 102....