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TMI Blog2013 (12) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... An income is chargeable to tax when it actually accrues to an assessee - Here no income actually accrued to the assessee - There is no statutory obligation on the assesse that the assessee must charge interest on the advance amounts - Decided against Revenue. - Income Tax Appeal No. - 585 of 2012 - - - Dated:- 7-5-2012 - Hon'ble Ashok Bhushan And Hon'ble Prakash Krishna,JJ. For the Petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the advances were not made out of borrowed capital. The said explanation was not found satisfactory by the Assessing Officer who added notional interest income @ 9% per annum and framed the assessment order. The matter was carried in appeal before the C.I.T. (A)-II, Kanpur who by the order dated 15.02.2011 allowed the appeal and deleted the addition of notional interest income. The said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces or loans. 3) Whether there was any material before the Tribunal to take the view and to hold that there was notional income or deemed income by the assessee when in fact, the advances were given to closely associated group companies on interest free basis although it had charged interest from M/s Deva Built Tech. Pvt. Ltd. and no compelling circumstances or business compulsions were shown b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the interest has not been disputed by the revenue. The matter of charing interest is a matter of contract between the parties. An income is chargeable to tax when it actually accrues to an assessee. Here it is not a case of any income actually accrued to the assessee. The department has sought to levy the tax as deemed income of the assessee on the ground that the assessee should have charged ..... X X X X Extracts X X X X X X X X Extracts X X X X
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