1979 (4) TMI 47

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....een raised. 1. That the learned AAC erred in facts as well as in law. 2. That on the facts and in the circumstances of the case, the AAC was not justified in deleting the addition of Rs. 74,359 being interest on loan due from M/s. Tejpal Jamunadas. 3. That the order of the AAC may be set aside and that of the ITO restored to the extent stated above." 2. The facts giving rise to the pre....

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....ade as to the debtor's financial status being bad and that the debtor was nearing insolvency, the assessee did not think it desirable to account for accrued interest for the asst. yr. 1973-74 and for the assessment. year. now under appeal.(1974-75) 3. The ITO brought to tax accrued interest during the asst. yr. 1973-74 as also during the asst. year. now under appeal. 4. On appeal, the AAC de....

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.... The Bench held that "the assessee was not obliged to show such interest income in its accounts and in that view of the matter, the ITO was not justified to bring it to tax on mere presumptuous accrual basis. The order of the AAC on this point in the circumstances of the case calls for no interference and the same is, therefore, affirmed." 6. The facts, the parties, the reasonings of the ITO an....