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2023 (7) TMI 370 - AT - Income TaxRevision u/s 263 by CIT - assessment of assessee’s notional interest income on non-performing assets “NPAs” on accrual basis as per provisions of the Act vis-à-vis applicability of the newly introduced ICDS-IV read with CBDT’s circular no. 10/2017 dated 23.03.2017 - PCIT’s revision directions holding the National e-Assessment Centre, Delhi’s assessment dated 15.03.2021 to have been completed without making the necessary enquiries and verifications thereby rendering the same as an erroneous one causing prejudice to interest of the revenue - HELD THAT:- We find no merit in the Revenue’s stand supporting the PCIT’s revision directions under challenge in light of the tribunal’s decision in assessee own case [2023 (7) TMI 292 - ITAT PUNE] 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 [2019 (4) TMI 378 - BOMBAY HIGH COURT]. That being the case, 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. PCIT has erred in law and on facts in terming the Assessing Officer’s sec. 143(3) regular assessment as an erroneous one causing prejudice to interest of the Revenue Thus we reverse the PCIT’s impugned revision directions once the assessee’s interest income on NPAs is not assessable to tax on accrual basis. Decided in favour of assessee.
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