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TMI Blog2014 (11) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... found credited in the books of account of the assessee for that year - Section 68 of the Act was not attracted – no substantial question of law arises for consideration – Decided against revenue. Deletion of interest chargeable on delayed payments - Whether the Tribunal erred in deleting the interest chargeable from customers when it is clear that assessee had been charging interest on delayed payments and did not declare it under the head income from other sources – Held that:- The addition was made purely on a notional basis, was deleted by the FAA - The Tribunal has also noted that the AO made an addition only on a notional basis - the AO had presumed that the assessee had earned the interest income whereas, the assessee had not recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on'ble ITAT erred in law in deleting the interest chargeable from customers when it is clear that assessee had been charging interest on delayed payments and did not declare it under the head income from other sources. At the outset, it has been conceded on behalf of the Revenue that the first question, as framed, does not arise for the AY 2002-03. Hence, the Court has been required to consider the submissions only on the second and third questions, as framed. Re: Question No.2. The Assessing Officer made an addition in the amount of ₹ 1.75 crores under Section 68 of the Act. This amount was shown in the audited balance-sheet as current liability on account of 'advance from customers to be repaid'. The addition w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.75 crores had been credited in the account of the assessee in earlier years and was not a fresh credit shown for AY 2002-03. This finding has been duly affirmed, after considering the accounts, by the Tribunal. The Tribunal is correct in the view which has been taken because Section 68 of the Act permits an addition to be made where any sum is found credited in the books of account of the assessee for that year. In the present case, on a plain reading, Section 68 of the Act was not attracted. Hence, no substantial question of law would arise on this ground. Re: Question No.3. The Assessing Officer had made an addition of ₹ 81.52 lacs. This was on the basis that under the agreement between the assessee and its flat purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X
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