When interest is not received and the possibility of recovery is almost Nil, the interest cannot be treated to have accrued, says ITAT

Last updated: 10 August 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT) has ruled that if interest is not received and has virtually no possibility of recovery, it cannot be considered as accrued income. This decision was made in appeals filed by the Revenue against a cooperative bank. The Tribunal dismissed the Revenue's appeals, upholding the deletion of additions made on account of interest on non-performing assets and interest accrued during liquidation.

Court :
ITAT Pune

Brief :
Both these appeals by the Revenue against the separate common order dated 23-01-2018 passed by the Commissioner of Income Tax (Appeals)-7, Pune [„CIT(A)‟] for assessment years 2009-10 and 2010-11.

Citation :
ITA Nos.907 & 908/PUN/2018

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