1991 (9) TMI 42

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..... -tax Act, 1961, is in regard to the assessment year 1980-81. At the outset, it may be stated that learned counsel for the assessee has not pressed question No. 7 regarding the claim for deduction of bonus. As regards the other questions Nos. 1 to 6, he raised a common contention as to whether the Tribunal was right in law in holding that the assessee was liable to pay tax on interest on sticky loa .....

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..... 2, the Supreme Court stated as follows (headnote) : " The conduct of the parties in treating the income in a particular manner is material evidence of the fact whether income has accrued or not. " We, however, find that, in the present case, the conduct of the assessee has not been consistent in the sense that in this year also, the assessee had filed suits in regard to some sticky loans only. .....

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..... evidence of the fact that income has not resulted or accrued to the assessee. " In view of the same and in view of the findings arrived at by the income-tax Appellate Tribunal in its appellate order that whether the assessee charged in its books interest or not was immaterial and on the basis of the mercantile system of accounting followed by the assessee, the assessee was liable to pay tax on t .....

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