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2016 (2) TMI 36 - AT - Income TaxAddition on account of interest on Non Performing Assets - assessee is following the mercantile system of accounting - CIT(A) deleted the addition - Held that:- As decided in Unclaimed dividend in Deogiri Nagari Sahakari Bank Ltd. [2015 (1) TMI 1218 - BOMBAY HIGH COURT] question amounts to excess provisions for dividend made by the Assessee on an earlier occasion which has been reversed by the Assessee in the year under consideration and transferred to a reserve account. The provisions for dividend made earlier was not a charge action profits but it was appropriation of the profits available post taxation. Assessee bound by Reserve Bank of India directions to treat deposit as non-performing asset – Interest does not accrue - Decided in favour of assessee
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