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TMI Blog1990 (9) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... -At the instance of Revenue, the Tribunal has referred the following two questions under section 256(2) of the Income-tax Act, 1961 : "(1) Whether, on the facts and in the circumstances of the case, there was material before the Tribunal to hold that there was no agreement to charge interest from April 1, 1964, and onwards ? (2) Whether, on the facts and in the circumstances of the case, the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 1966-67, the Income-tax Officer took the view that an amount representing interest at the rate of 6% per annum should be added to the assessee's income, notwithstanding the fact that no such interest is shown in the account books of the assessee. Accordingly, he added the appropriate amount. On appeal, it was affirmed by the Appellate Assistant Commissioner. On further appeal, however, the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s disclosed by the assessment order, the assessee filed a suit for recovery of Rs.42,70,362.42 with interest at the rate of 6% per annum. The suit amount was calculated in the following manner : Rs. P. Balance due as on March 31, 1966 : 41,17,443.63 (after adjustment of payment of Rs. 30,000 on June 23, 1965) and after calculating interest at 6% on the balance of Rs. 37,04,315.71 due on March ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no other material except the above averments to determine the said question. In our opinion, the plaint averments do clearly indicate and affirm that there was an agreement to pay interest at the rate of 6 per cent. annum during the two previous years relevant to the assessment years concerned herein and that such an agreement continued even subsequent thereto. The Tribunal has clearly m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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