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.