TaxTMI 
TaxTMI 
2026 (6) TMI 612
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....). ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE B.M. SHYAM PRASAD) The Revenue is in appeal calling in question the Income-Tax Appellate Tribunal's similar but separate orders. The Tribunal has interfered with the orders in the corresponding appeals by the Commissioner of Income-Tax. The details of the corresponding appeals with the Commissioner of Income-Tax, the Tribunal and this Court are as follows. These details are for the assessment years as indicated in this table: Assessment Year The date of the Assessment Order The Details of appeals with the Commissioner of IT [Appeals] The Details of the Appeals with Tribunals 2014-15 21.12.2016 ITA No.586388661/CIT(A)/ GLB/2016-17 ITA No.1540/Bang/2 018 2015-1....
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.... reasoned as follows: "Further, there is no acceptable reason as to why after offering interest income to tax in earlier year, the assessee should suddenly stop this year. The amount deposited is certainly the positive income of the assessee. Hence the income accrued is the income of the assessee in the year it is accrued. Further the assessee is following the mercantile system of accounting. Thus the assessee has to offer the accrued interest as income in the year it is accrued. In view of the above and considering the provisions of section and following the decisions of the Hon'ble supreme court in the case of M/s Morvi Industries Ltd the appeal of the assessee is dismissed." 4. The Assessee has filed its correspondin....
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....w, the Income Tax Appellate Tribunal was correct in deleting the addition of unaccounted accrued interest on Fixed Deposits for the AY 2014-15 though the Hon'ble High of Karnataka in its order in WP No. 112471/2019 (T-IT) dated 21.09.2021 specifically mentioned that the said order passed will not effect any TDS already deducted by the respondent Banks prior to the interim order dated 09.09.2019. Sri M. Tirumalesh, the learned counsel for the Revenue, submits that the aforementioned questions are common to all appeals and that the substantial questions must be admitted for disposal of these appeals on merits. Upon hearing Sri M. V. Sheshachala, the learned Senior counsel for the Assessee, the afore questions are admitted in all these ....
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....d Senior Counsel submits, without dispute from Sri M. Tirumalesh, that the CBDT Circular dated 28.12.2015 continues to be in force and that the Revenue has not called in question the writ Court's order dated 21.09.2021 in WP No. 112471 of 2019. 8. The propositions that are underlined by the CBDT circular dated 28.12.2015, after the Delhi High Court Division Bench judgment, is that the Assessee would only be entitled to interest as it accrues in future and not in present as it would be subject to the outcome in the pending proceedings and that the uncertain accruing interest cannot be treated as income for the purposes of Section 194A of the IT Act. The propositions are not undermined, and with the uncertainty over ownership of the Fi....