2014 (8) TMI 1219

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.... These appeals preferred by Revenue are directed against the Orders of the CIT(A)-VII, Hyderabad dated 30.09.2013 for the assessment year 2008-2009. Since the facts are common, the appeals are clubbed and heard together and are being disposed of by this consolidated order. 2. The only issue involved in these appeals relates to assessment of accrued interest brought to tax by the A.O. in the hands of these assessees. 2.1. Briefly stated, the facts of the case are that the assessee companies are among the 37 companies under the control of Mr. B. Ramalinga Raju and his family members and had transactions with M/s. Satyam Computer Services Limited (in short "SCSL"). Mr. Ramalinga Raju lifted the veil of secrecy and on 07.01.2009 made a c....

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.... M/s. Meghana Agro Farms P. Ltd., Hyderabad 3,71,82,329 5. M/s. Himavat Greenfields P. Ltd., Hyderabad 3,80,14,274 6. M/s. Koel Agro Farms P. Ltd., Hyderabad 3,15,08,181 7. M/s. Ahar Greenfields Farms P. Ltd., Hyderabad 3,23,69,109 8. M/s. Saravati Greenlands P. Ltd., Hyderabad 3,16,01,464 3. On appeal, the Ld. CIT(A) after detailed consideration of the submissions of the assessee held that one cannot conclude that interest income has definitely accrued and arisen to the assessee at the rate of 18% as held by the A.O. He further held that as and when the Court finalises the suit, the interest rate mentioned there in can be reckoned and income can be taxed in the year in which the court pronounces i....

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.... of advances, it cannot be said that the said rate of interest is applicable as M/s. SCSL has not admitted the liability of even the amounts of advance. As such, we find that there is no certainty with regard to the said rate of interest. Therefore, it cannot be presumed that the interest accrued to the assessee at the rate of 18% p.a. as claimed by the assessees in the suits filed for recovery of advances. The Civil Courts would consider and decide the liability of M/s. SCSL to repay the amounts of advances and would also consider the liability of M/s. SCSL to pay interest thereon and the rate of interest at which the advances should be repaid. Therefore, unless and until the liability to pay the advances and the rate of interest at which ....