1980 (12) TMI 13

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....256(2) of the I.T. Act, 1961, for the assessment years 1963-64 and 1965-66 the following questions have been referred : "1. Whether the finding of the Tribunal that it has not been established that the assessee chose to forgo the interest from the two debtors, namely, M/s. Chitrabani and M/s. Chitralok, on ground of commercial expediency and the circumstances in which the interest was forgone a....

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....nces of the case, the finding of the Tribunal that the action of the assessee in not charging interest to Commercial Industries (India) Private Ltd., similarly viewed by the Tribunal for want of evidence in establishing the assessee's claim that there was mutual agreement requiring the assessee to surrender the interest on grounds of commercial expediency is based on mere surmise, suspicion and co....

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.... The assessee was not able to give us the present financial condition, whereabouts or activities of M/s. Chitralok or its partners. There was no oral or documentary evidence to show that M/s. Chitralok was financially unsound at any particular point of time. The reasons for making advance were not substantiated and it was merely stated that the advances were made by the assessee to M/s. Chitralok ....

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....d in the order of the Tribunal, it cannot be said that the Tribunal's decision or finding was a surmise, conjecture and suspicion and/or perverse. If that is so, the Tribunal was right in holding that the interest from the said two debtors should be included in the income of the assessee. In that view of the matter question No. 1 must be answered in the negative and in favour of the Revenue. Si....