The Supreme Court of India issued notice against the Central Bank of India on a Special Leave Petition ( SLP ) which arose out of an impugned final judgment and order dated 21-07-2023 in ITA No. 1683/2018 passed by the High Court of Judicature at Bombay.
The Bombay High Court disposed of the petition against the respondent Central Bank of India in light of the judgement in Commissioner of Income Tax-LTU v/s. Union Bank of India
The question raised in the above-said judgement was whether the Tribunal was justified in holding the income by way of interest on sticky loans had not accrued to the assessee. However, the Tribunal had not held that the interest on sticky loans receivable but credited separately in the interest suspense account was not an interest accrued to the assessee. What it has held is that the instructions issued by the Board in the form of a circular in September 1984, were binding on the Department and that the question of its taxability or any relief was required to be considered in the light of that circular.
The question of taxability of this interest or allowing any relief in respect thereto in the light of the circular has not been raised and the question as raised does not arise out of the order of the Tribunal. The Court held that the Tribunal was justified in refusing to refer to the question raised as a question of law.
Mr N Venkatraman, Mr Raj Bahadur Yadav, appeared for the petitioner and Mr Udai Khanna, Mr Ashok Panigarhi, Mr A K Kaul, and Mr Praneet Pranab appeared for the respondent.
A two judge bench of Justice Abhay S Oka and Justice Ujjal Bhuyan issued notice to be heard along with SLP ( C) Dy. No. 49814/2023 and other connected matters.
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