1990 (4) TMI 9

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.... referred to this court by the Tribunal under section 256(1) of the Income-tax Act, 1961 ( "the Act") : "Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in maintaining the order of the Commissioner (Appeals) deleting the addition of Rs. 36,25,303, representing interest on sticky advances for the assessment year 1974-75 ? " The assessment year involved is....

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....r and was liable to assessment. Hence, the said amount was added back to the total income of the assessee. The assessee preferred an appeal to the Commissioner (Appeals) who allowed the claim of the assessee following the Board's instructions dated October 6, 1952, and deleted the entire amount of Rs. 36,25,303. Being aggrieved, the Revenue came up in appeal before the Tribunal. The Tribunal....

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....the 'interest suspense account'. Carrying a certain amount which had accrued as interest without treating it as a bad debt or irrecoverable interest but keeping it in suspense account was repugnant to section 36(1)(vii) read with section 36(2) of the Income-tax Act, 1961. The concept of real income could not be so read as to defeat the object and the provision of the statutory enactment. Even if i....

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....In view of the earlier question of the Supreme Court, that question could not be decided by us. In the case of State Bank of Travancore [1986] 158 ITR 102, the Supreme Court clearly pointed out that these circulars in question were executive in character and were in the nature of concessions and, as such, the same could not alter the provisions of the law. The principle of contemporaneous expositi....