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2014 (3) TMI 1130 - ITAT CHENNAIAccrual of income - Deduction of provision for non-performing assets - Held that:- We find that the issue is squarely covered in favour of the assessee by the decision of jurisdictional High Court in assessee’s own case [2007 (6) TMI 180 - MADRAS HIGH COURT]. It was held by Hon’ble jurisdictional High Court that interest on non-performing assets was to be considered only after recognizing the income from such assets. Hon’ble jurisdictional High Court in the case of Elgi Finance Ltd. (supra) held that interest on non-performing assets could not be considered as income on accrual basis. We, therefore find no merits in the appeal filed by the Revenue. Rental receipts - assessable under the head “business” OR “ income from house property” - Held that:- We hold that the property let out by the assessee in order to exploit commercial asset of the assessee which meant for its business is assessable under the head “income from business” and not under the head "income from house property”. This position was also accepted by the Department itself over a period of decade and therefore there is no valid reason not to consider the income from exploitation of assets by the assessee as income from business. Thus, we sustain the order of the Commissioner of Income Tax (Appeals) in accepting the claim of the assessee on this issue. The grounds of appeal raised by the Revenue on this issue are rejected.
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