Calculation of interest accrued on Non-Performing Assets as per Section 145 of the Income Tax Act

Last updated: 27 November 2021

Save Share

Quick Summary

This judgement clarifies the calculation of interest accrued on Non-Performing Assets (NPAs) in accordance with Section 145 of the Income Tax Act. It addresses the specific circumstances under which such interest can be considered for tax purposes, particularly when the asset has become non-performing. The High Court's decision provides important guidance for both taxpayers and tax authorities on the correct application of the law in these situations.

Court :
High Court of Karnataka

Brief :
Appeal Filed by Revenue under section 260A of Income Tax Act ,1961

Citation :
ITA 205/2021

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF OCTOBER, 2021 PRESENT THE HON'BLE MRS.JUSTICE S.SUJATHA AND THE HON'BLE MR. JUSTICE E.S.INDIRESH I.T.A.No.248/2021 c/w I.T.A.No.235/2021 IN I.T.A.No.24812021: BETWEEN :
1 . THE PP COMMISSIONER OF INCOME TAX 5TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU - 560 095
2 . THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE -1 PRESENT ADDRESS ACIT, CIRCLE -1(1)(1) 2ND FLOOR, BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU - 560 095
(BY SRI K.V.ARAVIND, ADV.)
AND :
NI/s DAVANGERE DISTRICT CENTRAL CO-OPERATIVE BANK LTD., NG.311, A BLOCK, DEVARAJA URS LAYOUT P.B.ROAD, DAVANAGERE - 577 006 PAN: AAATD6617N
APPELLANTS
RESPONDENT
(BY SRI A.SHANKAR, SENIOR COUNSEL FOR SRI S.ANNAMALAI, ADV.)

Please find attached the enclosed file for the full judgement.

FAQ :

The judgement concerns the calculation of interest accrued on Non-Performing Assets (NPAs) as per Section 145 of the Income Tax Act.

The judgement was issued by the High Court of Karnataka at Bengaluru.

Section 145 of the Income Tax Act deals with the methods of accounting and the computation of income.

The parties involved were the Commissioner of Income Tax and the Assistant Commissioner of Income-Tax (Appellants) versus M/s Davangere District Central Co-operative Bank Ltd. (Respondent).

Attached File : 1442821_4646_ita248_21_25_10_2021.pdf

downloaded 315 times

150 Views Comment Share Income Tax Report

Judgement posted by

Poojitha Raam Vinay

Practice

I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

View Judgements

Comments