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2017 (2) TMI 1361 - HC - Income TaxTreatment of interest on Non Performing Assets (NPAs) - Revenue contends that given the obligation of the assessee to maintain books in accordance with Section 209 of the Companies Act, 1956 on accrual basis, it had to reflect the interest accrued upon unpaid loans (NPAs) - Held that:- Assessee successfully contended before the ITAT that the treatment it accorded to such transactions was in accord with the decision of this Court in CIT v. Vasisth Chay Vyapar Ltd. (2010 (11) TMI 88 - DELHI HIGH COURT) as held Assessee bound by Reserve Bank of India directions to treat deposit as non-performing asset – Interest does not accrue - question of law decided against the Revenue This Court also notices that the assessee’s method of treatment of such accrued interest was also subject matter of a previous order of this Court in CIT v. GE Countrywide Consumer Financial Service Limited [2016 (1) TMI 1371 - DELHI HIGH COURT] . The Court had affirmed the views of the ITAT which ruled in favour of the assessee.
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