1992 (1) TMI 52

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.... instance of the Revenue, the following questions have been referred by the Income-tax Appellate Tribunal, Delhi Bench 'C', in pursuance of the direction issued by this court under section 256(2) of the Income-tax Act, 1961: " 1. Whether, on the facts and circumstances of the case, there was material before the Tribunal to hold that there was no agreement to charge interest from the parties ? ....

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....ts between March 10, 1965, and April 14, 1969. The debtor company credited the assessee with interest up to the period ending June 30, 1969, whereafter no interest was charged nor credited nor was the same claimed by the debtor-company as deduction in the computation of its own income. Similarly, advances were made in favour of J. P. Srivastava and Sons Pvt. Ltd., Kanpur, and interest was charged ....

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.... Income-tax Officer and the Appellate Assistant Commissioner and held that there was no material on the record to show that any agreement, whether written or otherwise, existed between the assessee and the debtor-companies for payment of interest. The Tribunal further held that the interest had neither legally nor actually accrued in favour of the assessee and, consequently, the assessee rightly d....

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....ry, from the correspondence exchanged between the assessee and the Department and other material on the record, it is apparent that the assessee and the debtor-companies were sister concerns and that the assessee had stopped charging interest from the debtor-companies with effect from June 30, 1969, for the simple reason that the debtor-companies had run into financial straits and, consequently, t....