A.M. Sapre, J. - (1.) THIS is an appeal filed by the CIT (Revenue) under s. 260A of the IT Act against the order dt. 13th Oct., 1998 passed by the Tribunal, Jaipur Bench in ITA No. 2265/Jp/1992. The appeal was admitted for final hearing on following substantial questions of law : (i) Whether as per provisions of s. 43D of the IT Act, by way of interest is not chargeable to tax to its P&L a/c if it is actually received by the institution? (ii) Whether the change of system of accounting from mercantile system to cash system will absolve the assessee from paying a tax in view of s. 43D of the IT Act?
(2.) HAVING heard the learned counsel for the parties and on perusal of the record of the case, we are of the considered opinion that appeal involves one more substantial question of law, which ought to have been framed while admitting the appeal on aforementioned two substantial questions of law. We therefore consider it proper for just decision of the case to frame one more additional question below for answer by taking recourse to the powers conferred on us by proviso to sub -s. (4) of s. 260A of the Act. The question is formulated below : In the absence of any discussion much less finding recorded by the Tribunal on any of the issues and in particular on the issues argued before the Tribunal and on which aforementioned 2 questions are framed, whether a case for remand to Tribunal is made out? The dispute arises out of asst. yr. 1991 -92 and it essentially relates to applicability of s. 43D in relation to amount of Rs. 4,57,70,602 claimed by the assessee by way of deletion which was added by the IAO in their income.
(3.) THE impugned order (para 5) reads as under : We have examined the facts of this case and are of the opinion that the Supreme Court and various High Courts in the similar circumstances have held that assessee is not accepted to return any income from interest where recovery of principal itself is doubtful. Assessee can be taxed on real income. No tax can be charged on notional or unearned income. This was the essence of the decision of the Tribunal in the case of the assessee for earlier assessment years which has been followed by the CIT(A) while deciding this appeal. We, therefore, do not feel any reason or justification for interfering in the order passed by the CIT(A). Under the circumstances, the appeal filed by the Revenue is dismissed.;