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2012 (5) TMI 625 - AT - Income TaxAccrued interest in respect of the borrowal account - Held that:- We would like to reiterate that though the AR had vouched that in case the accrued interest in respect of the borrowal account was not actually realized and the amount has become NPA as at the close of subsequent year, interest accrued and credited to income account in the corresponding previous year has been reversed and so on and so forth. However, no documentary proof was forth-coming for such an exercise made by the assessee. In view of the above, this issue is remitted back to the file of the AO with a specific direction to look into the veracity of the assessee’s assertion and to take appropriate corrective step, if so warrants. The AO shall, however, keep in view the case laws relied on by the learned AR while implementing the above direction. It is ordered accordingly.
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