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TMI Blog2018 (9) TMI 1824X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 (for short the 'Act'). 2. Brief facts of the case are that the assessee company engaged in the business of investment in share and other immovable properties, filed its return of income for the assessment year under consideration declaring the total loss of Rs. 9,94,362/-. Since, the case was selected for scrutiny, notice u/s 143 (2) and 142 (1) of the Act was issued. In response to the said notices, the authorized representative (AR) of the assessee attended and filed the details called for by the AO. Since, the assessee company had acquired right to recover the debts alongwith interest from the defaulters as per the deed of assignment entered with the Bank of Baroda, the AO made an addition of Rs. 1,11,46,609/- being interest due on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the earlier years. Since, the order of the Ld. CIT(A) has decided the issue in question by following the decision of the ITAT, there is no merit in the appeal of the revenue. 5. On the other hand, the Ld departmental representative (DR) relying on the assessment order passed by the AO submitted that the Ld. CIT (A) has wrongly deleted the addition without taking into consideration the fact that assessee has acquired the right of suit as per assignment deed and is entitled to recover the debt along with interest and cost of the suit. In other words, the interest on debts which was recoverable by the Bank of Baroda was recoverable by the assessee, therefore, the Ld. CIT (A) has wrongly deleted the addition. 6. We have heard the rival s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt may, in the decree, order interest at such rate as the court deems reasonable to be paid on the principal sum adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, [with further interest at such rate not exceeding six per cent per annum, as the Court deems reasonable on such principal sum], from the date of decree to the date of payment, or the such earlier date as the court thinks fit. [Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six per cent per annum, but shall not exceed the contractual rate of inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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