2012 (9) TMI 295

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..... ears the borrowing companies were in a bad financial position making it impossible to realize any interest from them, whereas that fact-situation does not obtain in the year under appeal in which the borrowing companies were making handsome profits, thus these loans could not be treated as non-performing assets - against assessee.
MR. JUSTICE S. RAVINDRA BHAT, MR. JUSTICE R.V. EASWAR, JJ. For Appellant: Mr.Deepak Chopra, Sr.Standing Counsel with Mr.Harpreet Singh Ajmani, Advocate. R.V. EASWAR, J: (OPEN COURT) This is an appeal by the Revenue under Section 260A of the Income Tax Act, 1961 („Act‟ for short) and the following substantial questions of law are sought to be raised:- "(A) Whether the order of the Tribunal is .....

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..... , the assessee was no longer justified in not charging interest on the loans to them. The details of the loans and the amount of interest on them for the year under appeal are as under:- S.No. Name of the Party Amount of loan Rate of interest Amount of interest not declared 1. Jindal Equipment Leasing & Consultancy Services Ltd. 7,32,72,000 16% 1,17,23,520 2. Mansarovar Investment Ltd. 5,10,17,630 16% 81,62,820 3. Goswamis Credits & Inv. Ltd. 1,14,97,427 14.5% 16,67,126 Total Interest 2,15,53,466 In the aforesaid view of the matter, the Assessing Officer added the sum of Rs.2,15,53,466/- as interest on the loans. 3. The CIT(Appeals), before whom the assessee filed an appeal noticed that the debtor-companies were not .....

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..... rtheless it proceeded to observe that " it has not been disputed that the facts and circumstances in the present year and earlier years are same. In view thereof, we are unable to accept the plea of the Ld. DR that facts are distinguishable in this year and a view different from the one taken by the Hon'ble Delhi High Court should be adopted. The facts and circumstances being similar, Hon'ble Delhi High Court having clearly held that the impugned interest income in this case cannot be recognized for these years, respectfully following and the addition made on this account is deleted." It may be noted from the above observations of the Tribunal that the order of the Tribunal for the earlier years was confirmed by the judgment of this Court d .....

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