9911796707
TMI Blog1989 (7) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ications for the assessment year 1978-79, one arising out of proceedings under the Income-tax Act, 1961, and the other under the Interest-tax Act. By these applications, the assessee, Benares State Bank Ltd., has desired that the Income-tax Appellate Tribunal, Allahabad Bench, Allahabad, be directed to draw up statement of the case and to refer certain questions, proposed in these applications for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer estimated such interest to be Rs. 15 lakhs and brought it to tax in the hands of the assessee. In the first appeal against the assessment order, basically three contentions were raised. The first contention was that the assessee was not liable to tax on any amount being the accrued interest on sticky loans, on the ground that the recovery of the principal amount itself was doubtful. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be assessed, as the same had already been taxed in the earlier year and the same was transferred by the assessee during this year from the suspense account and credited to the profit and loss account. The appellate authority observed that the interest amount credited to the suspense account but taxed in earlier assessment years was sub-judice before the higher authorities. However, accepting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Tribunal on which any direction could be issued to the Tribunal to refer the case for the opinion of this court. The basic question whether the assessee is liable to tax on the interest income on "sticky advances" is concluded against the assessee by the decision of the Supreme Court in the case of State Bank of Travancore [1986] 158 ITR 102. The questions proposed by the assessee in this rega ..... X X X X Extracts X X X X X X X X Extracts X X X X
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