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TMI Blog2017 (6) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee therefore rightly contended that merely because bank was making a claim of higher amount of interest, it would not become waiver to the assessee. It is also admitted fact that assessee has never claimed a waiver of interest as expenditure in its books of accounts and return of income. Therefore, there is no question of considering it to cessation of liability or any benefit arises from the business. Ld. CIT(A), therefore, on proper appreciation of facts and material on record rightly deleted the impugned addition. - Decided against revenue. - ITA No. 591/Del/2012 - - - Dated:- 8-6-2017 - Shri G.D. Agrawal And Shri Bhavnesh Saini, Judicial Member Assessee by : Shri S.K. Jain, Sr. DR Department by: Shri S.D. Kapila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some of the payments to the bank on time. As the some of payments were not made on time, bank started debiting in its books of accounts interest at higher rate. Assessee however continued to provide interest in its books of accounts at 9.5%. The outstanding amount as on 30th June, 2002 in the books of the assessee and with the bank was almost same but the difference was due to additional interest debited by the bank in their books of accounts. In the assessment year under appeal the assessee was in the process of inducting a new investor and therefore assessee decided to settle the outstanding loan out of the money brought in by the new investor. On 31st March, 2008 the outstanding loan as per the assessee s book was ₹ 2,20,00,000/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest relating to financial year 2004-05, 2005-06 and 2006-07 and that the same was not claimed by assessee due to application of section 43B.The AO has however taken the view that the total waiver by the bank was of ₹ 2.64 crores ( ₹ 5.14 crore as per books of the bank less ₹ 2.50 crores paid by the assessee). Based on this view that waiver is of ₹ 2.64 crores and assessee has already declared income of ₹ 1.42 crore as its income, difference was added of ₹ 1,21,02,913/- which is subject matter of the present appeal. It was submitted that the loan is shown because of the higher interest charged by the bank as against the interest on sanctioned loan. Merely because bank was making a claim of higher amount, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 18th November, 2016 and departmental appeal was refixed for hearing on merits. 7. After considering rival submissions, we are not inclined to interfere with the order of the Ld. CIT(A) in deleting the addition. The facts as noted by the Ld. CIT(A) are not in dispute . It is not in dispute that assessee had taken loan from the bank at the interest of 9.5% per annum. Since assessee was incurring losses and some payments were not made to the bank on time therefore the banks started debiting higher rate of interest in their books of accounts. However, the assessee continued to provide interest in its books of accounts as were provided on the sanctioned loan. The assessee filed complete details to show that when the matter was se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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