9911796707
TMI Blog1989 (10) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture and sale of coir. It had advanced a loan of Rs. 1,50,000 to a sister concern, Messrs. Mambad Rubber and Produce Company Ltd. The loan was outstanding. We are concerned with the assessment year 1979-80 for which the previous year ended on December 31, 1978. Till the end of the prior year, the interest on the said loan was included in the accounts. The petitioner/assessee was maintaining it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question of law said to arise out of the appellate order dated September 11, 1987, for the decision of this court. The Appellate Tribunal declined to do so. Thereafter, the assessee has filed this original petition under section 256(2) of the Income-tax Act to direct the Income-tax Appellate Tribunal to refer the following question of law, specified in ground D of the original petition, for the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the loan advanced became irrecoverable and the company passed a resolution to that effect or took steps in that regard. In view of the fact that the assessee was maintaining the accounts on mercantile basis, the interest on the loan accrued due. It is not the case of the assessee that the sister concern had gone into liquidation and there was any change regarding the payment of interest. In s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntext. On the above reasoning, we are of the view that the question of law, formulated in ground D of the original petition and extracted hereinabove, is not a referable question of law and we decline to direct the Income-tax Appellate Tribunal to refer the said question of law for the decision of this court. The original petition is without merit. It is dismissed. - - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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