- (1.) THE present appeal has been filed under s. 260A of the IT Act, 1961, (hereinafter referred to as "the Act"), arising out of following substantial question of law : "Whether, on the facts and in the circumstances of the case and the material available on the records, the Tribunal was legally justified in confirming the order of the CIT(A), deleting the addition of Rs. 1,59,980 made by the AO on account of interest chargeable from M/s Gee Key Consumers Products (P) Ltd. -
(2.) BRIEFLY stated the facts giving rise to the present appeal are as follows.
(3.) THE respondent -assessee is a private company limited. Its previous year is the financial year. In the asst. yr. 1988 - of the Act were initiated. During the course of the assessment proceedings, the AO found that the respondent -assessee had not charged any interest during the previous year relating to the assessment year in question from M/s Gee Key Consumers Products (P) Ltd., Delhi, to which a sum of Rs. 8,38,793 had been advanced. During this year it had made a further advance of Rs. 1,00,000 and had received interest of Rs. 6,933 from the said company. The AO while passing the assessment order had added the notional interest income of Rs. 1,59,980. Feeling aggrieved the respondent -assessee preferred an appeal before the CIT(A) who had partly allowed the appeal and deleted the addition of Rs. 1,59,980 which order has been affirmed by the Tribunal in the Revenue's appeal. We have heard Sri Shambu Chopra, learned counsel for the Revenue, and Sri Rakesh Kumar, learned counsel for the respondent -assessee.;