1983 (9) TMI 6

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..... -The Income-tax Appellate Tribunal, Bangalore Bench, has referred the following questions under section 256(1) of the Income-tax Act, 1961, for the opinion of this court : "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that the provisions of section 147(a) are not attracted ? 2. Whether, on the facts and in the cir .....

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..... had accepted the return and had excluded that amount from taxation in the assessment order completed on October 4, 1969. In pursuance of the notice issued under section 147(a) of the Act, the assessment was reopened and this sum of Rs. 54,485 was subjected to tax on the ground that the interest accrued and due on the loans advanced by the bank was the income of the bank for the relevant assessmen .....

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..... ns-Banks-Interest on doubtful loans Suspense account maintained for the Purpose of Treatment of, for income-tax purposes. In its Circular No. 37/54 dated the 25th August, 1924 (reproduced in section 4(1) as item I on page 239 of volume (1)), the Board held, as result of the conclusion reached at the conference of the Income-tax Commissioners, that interest accruing to a money-lender on loans en .....

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..... ce of this record is to avoid being very meticulous so long as there is no doubt about the bona fides of the write-off and also to avoid losing sight of recoveries. Having regard to this Circular, the Tribunal was justified in holding that the said interest of Rs. 54,485 was not assessable to tax during the relevant year. The interest credited to the suspense account by the assessee was the int .....

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..... statements filed along with the original returns disclosed the full details of the aforesaid account. There was, therefore, no failure on the part of the assessee to disclose fully and truly the material facts necessary for its assessment for the respective years. The view taken by the Tribunal is perfectly justified. From the balance-sheet, it is clear that there was no failure on the part of .....

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