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2014 (6) TMI 78 - ITAT AHMEDABADDeletion of estimation of income from FDR – Accrual of interest - Held that:- CIT(A) was rightly of the view that the Visnagar Nagrik Sahakari Bank Ltd. is in liquidation as per the directions of the RBI - the chances of recovery of the principal amount of the FDR made with Visnagar Nagrik Sahakari Bank Ltd. was doubtful - When the recovery of the principal amount itself was doubtful, then, the question of recovery of interest was almost impossible – thus, the assessee was justified in not accounting the interest income on accrual basis in the income for the year – Relying upon CIT vs. Ferozepur Finance Pvt. Ltd. [1980 (5) TMI 29 - PUNJAB AND HARYANA High Court] - assessee in earlier year also had not disclosed interest income on these FDRs which has been accepted by the Revenue – assessee was right not to book interest income on the basis of accrual- thus, there was no income in form of interest on FDRs – Decided against Revenue.
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