9911796707
TMI Blog2015 (4) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Rs. 53.48 Lakhs as working capital loan, totaling to Rs. 441.30 Lakhs. Since there was default in payment of the loan amount by the assessee, the Bank declared the account of the assessee as non-performing asset (NPA). The total interest accrued in the said account of the assessee was Rs. 193.96 Lakhs i.e., the total outstanding payable by the Bank was Rs. 635.26 Lakhs which included the principal amount as well as the interest. These figures are as per the accounts submitted by the assessee and accepted by the Department. During the assessment year in question, the assessee arrived at a one time settlement with the Bank and against payment of Rs. 635.26 Lakhs (as per the Books of Accounts of the assessee), as per the one time settleme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.96 Lakhs towards interest was disallowed and it was held that the total amount had to be first adjusted towards payment of principal amount, but considering the fact that the appellant had itself subjected the waived principal amount of Rs. 257.08 Lakhs to tax in its returns, in the interest of justice and equity the Tribunal directed that the disallowance of the interest under Section 43B of the Act be subsumed into the offer of Rs. 257.08 Lakhs on waiver of principal. 3. In the aforesaid facts, this appeal has been filed by the revenue raising the following substantial question of law: "Whether on the facts and in the circumstances, the Tribunal was correct in holding that principal sum of Rs. 2,57,08,826/- waived, is offered to tax, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owards waiver of principal sum is more than the erroneous claim of interest under Section 43B of Rs. 1,93,96,881/-. As both erroneous offers of waived principal sum to tax and erroneous claim of interest under Section 43B emanated from a single transaction/event i.e., OTS, both should be understood as to have cancelled each other." 7. We agree with the aforesaid finding recorded by the learned Tribunal. 8. If out of the total sum of Rs. 257.08 Lakhs which has been offered and subjected to tax by the assessee in its return, the amount of unpaid interest of Rs. 193.96 Lakhs is deducted then the waived principal sum would come to Rs. 62.58 Lakhs (i.e., 441.30 minus 378.72). Either it is the interest which is to be waived, and if the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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