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2015 (9) TMI 744 - AT - Income TaxAddition on interest taxed on accrual basis on Non Performing Assets(NPA) - CIT(A) deleted the addition - Held that:- As decided in CIT vs. Coimbatore Lakshmi Inv.& Finance Co.Ltd. [2009 (11) TMI 560 - Madras High Court] the principle of "accrual of income" comes into play only when the income was recognised. In the present case, the assessee has classified its assets on the basis of the notification issued by the Reserve Bank of India and found that the appellant under the category of nonperforming assets. From such non-performing assets, the assessee had not recognised any income in concealing the notification issued by the RBI. Therefore, the assessee was justified in not recognising the income as such. Once that was the case, there was no occasion to consider whether the principle of "accrual" would arise or not. Also see Shri Mahila Sewa Sahakari Bank Ltd Versus The Asst. CIT (OSD) [2015 (4) TMI 672 - ITAT AHMEDABAD ] - Decided in favour of assessee
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