1991 (9) TMI 42

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.... heard Sri V. B. Upadhya, senior advocate. This application under section 256(2) of the Income-tax Act, 1961, is in regard to the assessment year 1980-81. At the outset, it may be stated that learned counsel for the assessee has not pressed question No. 7 regarding the claim for deduction of bonus. As regards the other questions Nos. 1 to 6, he raised a common contention as to whether the Tribu....

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....est on such sticky loans. In the aforesaid case of the State Bank of Travancore [1986] 158 ITR 102, the Supreme Court stated as follows (headnote) : " The conduct of the parties in treating the income in a particular manner is material evidence of the fact whether income has accrued or not. " We, however, find that, in the present case, the conduct of the assessee has not been consistent in ....

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....re improbability of recovery where the conduct of the assessee is unequivocal, cannot be treated as evidence of the fact that income has not resulted or accrued to the assessee. " In view of the same and in view of the findings arrived at by the income-tax Appellate Tribunal in its appellate order that whether the assessee charged in its books interest or not was immaterial and on the basis of ....