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TMI Blog2001 (4) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... s set out at pages 2 and 3 of the paper book: "1. Whether, on the facts and in the circumstances of the case and in view of the circular of the Central Board of Revenue dated October 6, 1952, read with the subsequent circular dated October 9, 1984, issued by the Central Board of Direct Taxes, the Tribunal was justified in holding that the sum of Rs. 1,46,37,731 being the interest on sticky advan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 in the interest suspense account as the income of the assessee?" The assessee is a banking company. The assessment year is 1976-77 and the accounting period ends on December 31, 1975. During the assessment proceedings, the Assessing Officer noticed that a net amount of Rs. 1,46,37,731 being the interest on debts doubtful of recovery has been credited to the suspense account during the accounti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Investment Corporation Ltd. v. CIT [1999] 237 ITR 889 where their Lordships have reconsidered the issue and they have not followed their earlier view expressed in the State Bank of Travancore v. CIT [1986] 158 ITR 102 (SC). Learned counsel for the Revenue, Mr. Mullick, submits that in the case of UCO Bank [1999] 237 ITR 889 (SC), their Lordships have considered the circular issued in 1984 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ambit of the Income-tax Act, 1961, as that cannot be taxed in view of the circular issued by the Board. Dr. Pal, further submits that no part of the interest has been recovered, which was credited in the suspense account till today. Even otherwise if any part of the interest is received later that can be taxed under section 41(1) of the Act, in the year of receipt. Considering these fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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