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2018 (9) TMI 530 - AT - Income TaxInterest on Non Performing Assets - Accrual of income - Held that:- Interest on a loan whose recovery is doubtful and which has not been recovered by the assessee-bank, but has been kept in a suspense account and has not been brought to the P&L a/c of the assessee, could not be included in the income of the assessee. CIT(A) rightly deleted the additions towards interest on NPAs. There is no error or infirmity in the order of CIT(A). In case of Sri Mahila Sewa Sahakari Bank Limited (2016 (8) TMI 377 - GUJARAT HIGH COURT) we hold that the interest on NPA is to be recognized on actual receipt basis but not on accrual basis. Accordingly, we set aside the orders of the lower authorities and delete the addition. Gratuity premium paid to LIC Gratuity Fund - Held that:- We hold that actual payment made to group gratuity fund of LIC required to be allowed as deduction. We uphold the order of the Ld.CIT(A) and dismiss the appeal of the revenue for both the assessment years 2012-13 and 2013-14.
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