1989 (10) TMI 17

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....IPOORNAN J. -The petitioner is a public limited company. It is engaged in the business of manufacture and sale of coir. It had advanced a loan of Rs. 1,50,000 to a sister concern, Messrs. Mambad Rubber and Produce Company Ltd. The loan was outstanding. We are concerned with the assessment year 1979-80 for which the previous year ended on December 31, 1978. Till the end of the prior year, the inter....

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....e Appellate Tribunal, by an application under section 256(1) of the Income-tax Act, to refer question of law said to arise out of the appellate order dated September 11, 1987, for the decision of this court. The Appellate Tribunal declined to do so. Thereafter, the assessee has filed this original petition under section 256(2) of the Income-tax Act to direct the Income-tax Appellate Tribunal to re....

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....e was a modification of the contract for the payment of interest ; nor had the assessee a case that the loan advanced became irrecoverable and the company passed a resolution to that effect or took steps in that regard. In view of the fact that the assessee was maintaining the accounts on mercantile basis, the interest on the loan accrued due. It is not the case of the assessee that the sister con....