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TMI Blog2013 (4) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax (Appeals)-X, New Delhi dated 05.10.2012 pertaining to assessment year 2006-07. 2. The ground raised is that Ld. Commissioner of Income Tax (A) erred in upholding the addition of Rs. 1,04,204/- on account of interest on Non Performing Assets not recognized by the appellant. 3. On this issue Assessing Officer observed that assessee company has not recognized interest on Non-performing assets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in I.T.A. No. 552 of 2005 in the case of C.I.T. vs. M/s Vasisth Chay Vyapar Ltd. vide order dated 29.11.2010. In this case the brief facts of the case were as under:- "To state in brief, the assessee herein had advanced certain Inter Corporate Deposits (ICD) to M/s Shaw Wallace Company. The interest thereupon could not be received by the assessee for more than six months. The assessee is a Non- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Jurisdictional High Court has decided the issue as under:- "17. In this scenario, we have to examine the strength in the submission of learned counsel for the Revenue that whether it can still be held that income in the form of interest though not received had still accrued to the assessee under the provisions of Income Tax Act and was, therefore, exigible to tax. Our answer is in the ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncial crunch faced by Shaw Wallace. So much so, it was facing winding up petitions which were filed by many creditors. These circumstances, led to an uncertainty in so far as recovery of interest was concerned, as a result of the aforesaid precarious financial position of Shaw Wallace. What to talk of interest, even the principal amount itself had become doubtful to recover. In this scenario it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artmental Representative could not controvert the submissions of the assessee that this issue is squarely covered in favour of the assessee by the decision of the Hon'ble Jurisdictional High Court in the case of C.I.T. vs. M/s Vasisth Chay Vyapar Ltd.(Supra). 9. Respectfully following the Hon'ble Jurisdictional High Court decision as above, we set aside the orders of the authorities below and dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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