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2012 (9) TMI 295 - HC - Income TaxInterest income from loans - accrual of interest - Non inclusion in computation of income as that the borrowers were in a weak financial position - ITAT held it in favour of assessee - Held that:- As the debtor-companies were not loss making companies in the relevant previous years, that they were actually making profits and in this view of the matter, he held that the AO was justified in charging interest. Tribunal had decided the dispute in favour of the assessee for the assessment years 1997-98 and 1998-99 because in those years the borrowing companies were in a bad financial position making it impossible to realize any interest from them, whereas that fact-situation does not obtain in the year under appeal in which the borrowing companies were making handsome profits, thus these loans could not be treated as non-performing assets - against assessee.
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