Interest on Non-perfoming assets ::
Last updated: 07 October 2007
Court :
HC
Brief :
Held by the Hon`ble Court that, the principle of accrual comes in to play only when income is recognised, income from non-performing assets in consonance with notification issued by R.B.I. and A.S. 9 issued by the I.C.A.I. will be taxable in the appropriate assessment year on the basis of actual receipt.
Citation :
C.I.T. Vs. Llgi Finance Ltd.
Interest on Non-perfoming assets
C.I.T. Vs. Llgi Finance Ltd. 06/04/2007
[2007]293 ITR 357 (Mad)
Case Fact:
Whether, accrual interest on non-performing assets of non-banking financial company following mercantile system of accounting is taxable income?
Decision:
Held by the Hon`ble Court that, the principle of accrual comes in to play only when income is recognised, income from non-performing assets in consonance with notification issued by R.B.I. and A.S. 9 issued by the I.C.A.I. will be taxable in the appropriate assessment year on the basis of actual receipt.
CA.Saibaburao Nanduri
Published in Income Tax
Views : 65
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