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TMI Blog2014 (12) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... hip - unpaid consideration gives rise to a lien over goods sold and not for money lent – relying upon Bombay Steam Navigation Co. Pvt. Ltd. vs. CIT [1964 (10) TMI 12 - SUPREME Court] wherein it is held that, where interest on unpaid purchase price was not treated as interest on loan - before any amount paid is construed as interest, it has to be established that the same is payable in respect of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the CIT(A) holding, inter alia, that Rule 8D is applicable from assessment year 2008-09 onwards not for earlier period by relying upon the decision of Bombay High Court in the case of DCIT -vs.- Godrej Boyce Manufacturing Company Limited reported in 328 ITR 81, ignoring the that SLP is pending against this decision on whether Rule 8D is applicable with retrospective date or not. II) Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax-II, Kolkata). The second question was raised by the Revenue for admission on the basis of the Assessee having shown the expenditure incurred under the head interest in its books of accounts which it then claimed before the Assessing Officer to be factoring charges, its bills having been discounted by one M/s Lalji Financial. The Assessing Officer did not accept such contention of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assesse it is clear that interst is a term relating to a pre-existing debt, which implies a debtor creditor relationship. According to us, unpaid consideration gives rise to a lien over goods sold and not for money lent. This interpretation of ours is supported by the decision of Hon ble Supreme Court in the case of Bombay Steam Navigation Co. Pvt. Ltd. vs. CIT (1963) 56 ITR 52 (SC), wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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