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TMI Blog2014 (3) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... t the grounds for taking the order of Assessing Officer under revision exist – thus, the Tribunal in its own order later on examining the additions on merits cannot be found fault with. CIT (A) as well as Tribunal both noted that Sunrise Fincap Limited ie., the creditor had negative growth - The income of the company was reducing day by day and the company had no concrete business plan - Both the sides have agreed that the assessee would forgo the interest, if the principal amount of Rs. 1.5 Crores is paid by the company before the specified date - the company had incurred losses - The company was not in a good condition to repay the principal and even interest and had become sick - The appellant had therefore no reason to charge interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contentions one was that the amount of Rs. 44.48 lakhs [rounded off] was written off since the creditor agreed to return the principal sum of Rs. 1.50 Crores by way of full and final settlement. With respect to non charging of interest on other deposits, the assessee contended that the creditor companies had become sick and there was no possibility of recovery of interest. On both the counts, CIT [A] disagreed with the assessee and directed the Assessing Officer to pass a fresh order charging interest. The assessee carried the matter in appeal before the Tribunal. Pending such appeal, the Assessing Officer passed an order consequential to the revisional order passed by the Commissioner and levied tax on the interest amount. This fres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowable u/s. 37 of the IT Act. The appellant had reason to no charge interest from two companies. Thus, we have considered view that no interference is required in the order of th CIT [A], we dismiss the appeal of the Revenue. Learned counsel for the Revenue vehemently contended that the Tribunal having confirmed the order of CIT [A] passed under section 263 of the Incometax Act, 1961 [ Act for short] there was thereafter no scope of deleting the additions made by the Assessing Officer, which were merely consequential to the revisional order. On merits, he contended that the assessee had borrowed funds which were interest bearing and loaned the same to the sister concern without charging interest. It is true that the Tribunal did up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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