1993 (9) TMI 74

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....not justified ?" The brief facts of the case are that the assessee has advanced large sums to Messrs. Citric India Ltd. While completing the original assessments, the Income-tax Officer held that interest at 12 per cent. on the sums advanced to Messrs. Citric India Ltd. accrued to the assessee and included it in the computation of income ignoring the assessee's contention that no such income accrued to it because of disputes with the said company. On February 13, 1975, a branch office of the assessee in Rajmahal Palace was searched and a slip of paper was seized. On this slip, interest due from Messrs. Citric India Ltd. for various periods from April 1, 1965, to June 30, 1972, was noted under the heading "Interest due from Messrs. Citric....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....86 and Rs. 1,27,187.21 have been shown in respect of the financial years 1965-66 and 1966-67 and, therefore, the entries in respect of the remaining assessment years should be considered as interest earned by the assessee. Learned counsel for the assessee has submitted that in D. B. I. T. References Nos. 314, 315 and 316 of 1985 decided on April 13, 1988 (CIT v. S. M. S. Investment Corporation [1988] 173 ITR 393), this court has held H that a presumption can be raised but such presumption is a rebuttable presumption and relates to a question of fact. It was held in that case that the Tribunal has held that the presumption stands duly rebutted and this being a question of fact, the application was rejected accordingly. We have conside....