2021 (6) TMI 306

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..... arises out of the order dated 04-12-2017 passed by the CIT(A)-3, Pune in relation to the assessment year 2013-14. 2. The only issue raised in the appeal is against the confirmation of addition of Rs. 26,125/- on account of interest from bank. 3. Briefly stated, the facts of the case are that the assessee is a company engaged in the business of warehouse renting. The return of income was filed de .....

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..... of the bank. Due to such a ban, even the principal amount deposited by the assessee became doubtful of recovery, much less the interest in question that was not received. Not only that, the assessee stated before the ld. CIT(A) during the course of the first appellate proceedings taking place in the year 2017 that the interest was not received even till that time. 5. The ld. CIT(A) has gone with .....

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..... scenario prevailing in the instant case, it is seen that even the principal amount of deposit made by the assessee became irrecoverable. These facts indicate that the assessee did not receive any such interest income from Rupee Co-op Bank Ltd. whose functions were banned by the RBI. When we consider the mercantile system of accounting in juxtaposition to 'real income theory' in the facts and the .....

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