Case Law Details
The assessee has not produced any evidence to indicate the apportionment of the OTS amount of Rs.91 lacs towards principal and interest. It is obvious that a part of above amount was towards interest for the OTS amount was admittedly more than Rs.72 lacs (principal amount).
The assessee having failed to produce any documents or other evidence in this regard, we see no reason to speculate in its favour. The working of the proportionate amount by the assessee is not based on what infact transpired between SICOM and itself. The basis is merely hypothetical. It is not inconceivable that the interest was waived and/or reduced.
The reliance upon the rule that any amount received by creditors must first be adjusted towards interest and then towards principal cannot come to the assistance of the assessee. This is specially so where the assessee has not produced any evidence to indicate the true nature of the transaction in respect of the OTS.
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
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