TaxTMI 
TaxTMI 
2024 (12) TMI 777
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....cing. 2. This appeal under Section 260A of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') is filed by the assessee and pertains to block period 1989-90 to 1999-2000. The appeal has been admitted on the following substantial question of law. "Whether the Income-tax Appellate Tribunal committed an error of law in restoring the addition of Rs. 1,50,303/- as interest received by the assessee without assigning any reasons and without any improving reasoning of the Commissioner of Income-tax (Appeals) in para 2.2 and para 2.3 of the order dated 31.03.2003?" 3. Facts giving rise to filing of this appeal briefly stated are that the assessee is the Managing Partner of M/s.Hanuman Parboiled Rice & Oil Mill, Karimnagar. A search ....
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....d therefore, the interest cannot be assessed on accrual basis. 6. Being aggrieved, the Revenue filed an appeal before the Income-tax Appellate Tribunal (hereinafter referred to as 'the Appellate Tribunal'). The Appellate Tribunal by an order dated 10.01.2007 inter alia held as follows: "6. We have heard the learned Departmental Representative and perused the records of the Tribunal. We are of the considered opinion that the learned Commissioner of Income-tax (Appeals) was in error in deleting the above addition on the facts and circumstances narrated above. We, therefore, allow this ground of the Revenue and set aside the order of the learned Commissioner of Income-tax (Appeals) on this issue." The Appeal preferred by the Revenue was p....
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....t during the block period. 2.3 I have carefully considered the submission. The AO has made this addition without making even basic enquiries. If promotes were seized during the course of search and if the AO wants to assess the interest on those promotes, the minimum enquiry that the AO has to make is to find out whether the debtors had paid the interest. The appellant is not a company where the interest can be assessed on accrual basis. The appellant is an individual and if an individual has not actually received the interest, there is no question of assessing the same. In these circumstances, I delete this addition of Rs. 1,50,303/-." Thus, it is evident that the Commissioner of Income-tax (Appeals) on the basis of the remand report ....