COMMISSIONER OF INCOME-TAX Vs. STEEL STRIPS LTD

JUDGEMENT

(1.) THE instant controversy relates to the assessment year 1997 -98 more particularly, the same is focussed on interest component of Rs. 26,09,621 reflected by the respondent -assessee in its books of account, the respondent -assessee asserted that the aforesaid component of interest was not assessable towards tax on account of the fact that it had merely been reflected in the books of account to pressurize the loanees to make the payment. The Assessing Officer did not accept the plea advanced by the respondent -assessee and accordingly, included the interest component of Rs. 26,09,621 to the returned income of the assessee.

(2.) NOT satisfied with the determination rendered by the Assessing Officer, the respondent -assessee preferred an appeal before the Commissioner of Income -tax (Appeals). The appeal preferred by the respondent -assessee was disposed of by an order dated September 27, 2000. The Commissioner of Income -tax (Appeals) accepted the appeal preferred by the respondent -assessee and in determining the issue under reference arrived at the conclusion that during the course of the previous assessment year similar income reflected as interest by the assesses in its books of account was not taken into consideration while determining the quantum of tax payable by the respondent -assessee. The Commissioner of Income -tax (Appeals) accordingly adjudicated upon the controversy on the rule of res judicata.

(3.) THROUGH the instant appeal, the Revenue has impugned the orders passed by the Commissioner of Income -tax (Appeals) dated September 29, 2000, as well as the order passed by the Income -tax Appellate Tribunal dated July 15, 2005.