TMI Blog2018 (4) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... sumption is that it is not yielding any revenue; and there is no reason that the assessee be subjected to tax on the alleged notional income, even if it has adopted hybrid system of accounting. Tribunal cannot be said to have committed any error in approving the decision of the CIT (A), who had deleted the addition in respect of interest on NPAs. - Decided in favour of assessee - Income Tax Appeal No. 560 of 2017 - - - Dated:- 7-3-2018 - MR. DINESH MAHESHWARI, AND MR.S. SUNIL DUTT YADAY JJ. Appellants: (By Sri. Dilip M, Advocate For Sri. K. V. Aravind, Advocate) Respondent: (By Ms. Jinita Chatterejee, Advocate For Sri. S. Parthasarathi Advocate) JUDGMENT Ms. Jinita Chattarjee, learned counsel appearing for Shri S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax the interest on non-performing assets on accrual basis just because the assessee follows mercantile system of accounting and as such the addition made of ₹ 89,01,972/- as reduced by ₹ 9,84,489/- is hereby deleted. Aggrieved by the order so passed by the Tribunal, the Revenue seeks to maintain this appeal with the submissions that though the Hon ble Supreme Court has dismissed the SLP preferred in the case of Canfin Homes Ltd. (supra), but while keeping open the question of law involved in the case and as such, the same ought to have been considered by the Tribunal. It is submitted that as per amended Section 145 of the Act, the income under the heads profit and gains of business or profession has to be computed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cannot said to have been accrued and the said amount cannot be brought to tax. In the instant case, we are concerned with a non- performing asset. As the definition of non- performing asset shows an asset becomes non-performing when it ceases to yield income. Non-performing asset is an asset in respect of which interest has remained unpaid and has become past due. Once a particular asset is shown to be a non- performing asset, then the assumption is it is not yielding any revenue. When it is not yielding any revenue, the question of showing that revenue and paying tax would not arise. As is clear from the policy guidelines issued by the National Housing Bank, the income from non-performing asset should be recognised only when it is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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