TaxTMI 
TaxTMI 
2021 (1) TMI 872
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.... the ld. CIT(A) has only followed the decisions of Tribunal to decide in favour of the assessee. Per contra, the ld. D.R could neither controvert this contention of the ld. A.R of the assessee nor point out any difference in facts or law to take another view. 3. Ground no. 1 raised by the revenue against the action of the ld. CIT(A) in deleting the addition was Rs. 1,07,83,489/- made as notional interest on the loans given to certain companies / persons by the assessee. 4. Brief facts of the case as noted by the Assessing Officer is that the assessee in the earlier assessment years has reflected notional interest under 'income from other sources' which were in respect of interest free loans and advances given by the assessee to certain co....
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....t for charging of any income on a notional basis. What is to be charged to tax would only be on income actually earned and not otherwise. In any case, I find that the same issue had cropped up for the AY 2001-02 in the appellant's own case since the appellant had stopped charging interest on the amount of the said loans from the said assessment year. The direction of the CIT(A) to the AO to charge notional interest for that assessment year was reversed by the Jurisdictional ITAT, 'E' Bench vide order dated 21.07.2005 in ITA No. 980/Kol/05 Kolkata wherein it was held that no amount can be treated as notional interest in a case where interest has not been charged by the assessee. For the next AY 2002-03, similar action was again carried out b....
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....cial consistency, the AO is directed to delete the impugned addition of Rs. 1,07,83,489/-. This ground is allowed." 6. Aggrieved the revenue is before us. 7. We have heard both the parties and perused the record. We note that the ld. CIT(A) has taken note of the fact that the assessee has not received any interest and principal loan amount from two companies i.e. M/s Oxides & Specialities Ltd. and M/s Gujarat Carbon & Industries ltd. We also take note that these companies are incurring huge losses and could not pay principal amount as well as interest. So, the assessee has stopped charging interest on such loans and has not reflected it in its books. Thereafter, the ld. CIT(A) has relied upon the order of Tribunal in assessee's own case ....
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....e's own case on the same issue for AY 2002-03, the department has filed appeal u/s 260A of the Act before the Hon'ble High Court and is awaiting the decision of Hon'ble High Court. Therefore, the assessee's claim in respect of principal loan amount written off Rs. 4,63,40,475/- was disallowed. 10. Aggrieved the assessee preferred an appeal before the ld. CIT(A) who deleted the addition held as under: "5.2. I have considered the submission of the A.R of the appellant in the backdrop of the assessment order. I find that this issue is already a covered matter in favour of the appellant supra. In the appellant's own case for the assessment year 2002-03 similar issue had come up before the Hon'ble ITAT, Kolkata in ITA NO. 706/Kol/2008 supra. ....