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2017 (12) TMI 1416 - AT - Income TaxAddition on account of interest due to assessee - accrual of income - assessee did not include the same in its income on the ground that the amount of loan given to M/s ISG Traders Ltd., was Non-performing asset (NPA) - Held that:- The principle laid down by the Hon'ble Delhi High Court in the case of Vasisth chay Vyapar (2010 (11) TMI 88 - Delhi High Court) are identical to the facts of the present case. In the case before us the amount of interest was overdue but the same was not realized by the assessee since the year it was advanced to the party. Therefore we hold that the income of interest indeed has accrued to the assessee but has not been realized. Thus, applying the rule of real theory income we hold that the addition for the amount of interest income cannot be sustained in the hands of assessee. Thus, ground raised by assessee is allowed.
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