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TMI Blog2013 (7) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... the interest on the borrowed amount could not be recovered - it is difficult to accept the case of the assessee that on the mere score of reference to the BIFR - the recovery of interest or accruing of interest on the debtor company had become too difficult and bad to be realized – appeal allowed in favour of department. - - - - - Dated:- 12-9-2011 - CHITRA VENKATARAMAN MRS., JAICHANDREN M. JJ. JUDGMENT The judgment of the court was delivered by Mrs. Chitra Venkataraman J.-The Revenue is on appeal as against the order of the Tribunal for the assessment year 1992-93. The following substantial question of law was raised for consideration : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax (Appeals) allowed the assessee's appeal based on the earlier order, thereby deleted the assessment. The Revenue preferred an appeal before the Income-tax Appellate Tribunal, which affirmed the view of the Commissioner of Income-tax (Appeals) by referring to the order of the Cochin Bench of the Income-tax Appellate Tribunal in I. T. A. Nos. 291 and 379/Coch/93, dated September 27, 2000 passed in the case of the same assessee. Thus, the Tribunal rejected the Revenue's appeal. Aggrieved by the same, the Revenue is on appeal before this court. Learned standing counsel for the Revenue submitted that when the assessee had admitted the principal amount as good for recovery, the Tribunal should have considered the same yardstick, while cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave considered the claim of the debtor company independent of the recommendations of the BIFR. The debtor company contended that there could be no automatic winding up of the company just based on the order of the BIFR. A reading of the order of the Calcutta High Court thus shows that contrary to the assertion of the assessee that the debtor company could not make the amount on account of its difficult financial position, on the reference to the BIFR, the debtor company had taken a stand as to the solvency position. In that event, in the absence of any material to substantiate that the interest on the borrowed amount could not be recovered and, hence, had not accrued, it is difficult to accept the case of the assessee that on the mere score ..... X X X X Extracts X X X X X X X X Extracts X X X X
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