Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 292 - AT - Income TaxRevision u/s 263 - Allowability of interest on non-performing asset (‘NPA’) - HELD THAT:- AO had issued sec.143(2) notice as well as sec.142(1) notice specifically raising the issue of Income Computation and Disclosure Standards “ICDS” compliance. The assessee had duly replied the same highlighting the fact before the AO that the interest income regarding the impugned NPA advances could neither be assessed on accrual principle nor as per the recently introduced “ICDS”. DR could hardly dispute that all these standards uniformly contain this uniform clause thereby paving way for applicability of the provisions of the Act wherein the assessee has already succeeded on the instant issue of accrual of interest on NPAs right up to hon’ble jurisdictional high court having attained finality We hold that the CBDT’s circular issued in tune with the foregoing Income Computation and Disclosure Standards “ICDS” also would not apply once the assessee is not required to recognize its accrued interest on NPAs as income on accrual basis. We conclude that the PCIT has erred in law and on facts in terming the AO’s sec.143(3) regular assessment as an erroneous one causing prejudice to interest of the Revenue - Decided in favour of assessee.
|