9911796707
TMI Blog2019 (1) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... ent : Ms. R.Hemalatha, SSC ORDER T.S.SIVAGNANAM, J. These appeals by the assessee are filed under Section 260-A of the Income Tax Act, 1961 against the order dated 28.07.2017 passed by the Income Tax Appellate Tribunal, Madras "B" Bench in I.T.A.No.1034/MDS/2016 for the assessment year 2010-11 and the order passed by the Tribunal dated 16.02.2019 in M.P.No.330/Chny/2017 which was filed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assesse that the term deposit envisaged the right to receive interest on the principal amount only at the time of maturity/expiry of the term and the concept of reckoning income both in cash system of accounting and accrual system of accounting should be noted as different from the liability to deduct tax at source. 6. It is the case of the assessee that the liability to deduct tax at sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... namely cash system of accounting, the interest under dispute even though credited to the suspense account by the banker, the reckoning of income is wrongly confirmed overlooking the terms and condition of the term deposits. Further, the assessee contended that the right to receive interest would get crystallized at the expiry of the term of the deposit and even in the accrual system of accounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g should ordinarily get postponed to the date of maturity. 10. Therefore, the assessee contended that as per the terms and conditions of the term deposit, the right to receive the interest and the principal would get crystallized at the end of the term of the respective deposits and the assessee has offered the interest income of the respective deposits on the maturity/end of the term of such dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered view, needs to be looked into because the matured amount along with interest has been offered to tax during the relevant assessment year. Thus for the above reason we are inclined to remand the matter to the Assessing Officer for fresh decision. 13. Accordingly, the appeal of the assessee is allowed and the matter is remanded back to the Assessing Officer for fresh decision, after affo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
