Judgment

Mrs. Sujata V. Manohar, J.-Civil Appeal No. 235 of 1996 pertains to the assessment of the income of the appellant, United Commercial bank Ltd., for the assess­ment year 1981-82. The assessee had credited a total sum of Rs. 49,15,435/- by way of interest to a suspense account since recovery of the said amount was doubtful and no recovery of the said amount or any part of it which was by way of interest on loans advanced by it, had been effected in the three previous years. The assessee excluded the said sum of Rs. 49,15,435/- while computing its total income.

2. The income-tax department completed the assessment for assessment year 1981-82 on 28th of February, 1985, by following the Central Board of Direct Taxes Circular No. F. 201/21/84 TTA-II dated 9th of October, 1984 excluding from the total income of the assessee, the said sum of Rs. 49,15,435/- while computing the total income of the assessee. The Commissioner of Income-tax on examination of the assess­ment records considered the exclusion of the said sum of Rs. 49,15,435/- to be erroneous and prejudicial to the interest of the revenue. By his order dated 5th of March, 1987 he included the said amount in the total inco