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TMI Blog2001 (9) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... ed its income-tax return for the year 1988-89. It showed a loss of Rs.69,34,140. The Assessing Officer made certain additions. One of these related to an amount of Rs.24,67,864, which had been written off by the asses see. Aggrieved by the order, the assessee filed an appeal. It was dismissed by the Commissioner of Income-tax (Appeals) vide order dated March 3, 1992. The assessee filed a secon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal shows that the respondent/ assessee had promoted a unit, viz., Agro Foods Punjab Ltd. in collaboration with Voltas Ltd. This unit had been set up to manufacture juice, concentrates, tomato paste, etc. It had suffered huge losses. A rehabilitation plan was prepared by the promoters of the company and the other financial institutions. The assessee had agreed to waive the interest on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee had not waived off the interest, it "could have lost the entire share capital of Rs.48 lakhs and the principal amount of Rs.67 lakhs". On this basis, it has come to a firm finding of fact that the decision to 'waive the interest was taken by the assessee to safeguard its share capital of Rs.48 lakhs and the loan of Rs.67 lakhs, for which equal contribution was made by the assessee's collabor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... During the earlier assessment proceedings, the assessee had disclosed the amount of interest, which had accrued and subjected the amount to levy of tax. However, during the assessment year 1988-89, the assessee had waived the interest and thus claimed deduction. In the case of Morvi Industries [1971] 82 ITR 835 (SC), their Lordships of the Supreme Court had found that "there was nothing to show th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case, no facts have been placed on record or even pleaded in the petition of appeal which may indicate that the findings recorded by the Tribunal are not based on the evidence produced in the case. No other point has been raised. Before parting with the case, we may observe that the respondent-assessee is a Government company. As is usual, it has itself suffered losses. Despite th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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