Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 93 - HC - Income TaxAddition in respect of interest on non-performing assets (NPAs) - assessee is said to be a Co-operative Society, engaged in banking business - Held that:- We are satisfied that the suggested question of law does not arise in this case, as the matter stands concluded in this Court in view of the decision in Canfin Homes Ltd. (2011 (8) TMI 178 - KARNATAKA HIGH COURT), wherein, this Court has specifically held that income from NPA should be assessed on cash basis and not on mercantile bas is, despite the assessee following mercantile system of accounting. When a particular asset is shown to be NPA, the assumption is that it is not yielding any revenue; and there is no reason that the assessee be subjected to tax on the alleged notional income, even if it has adopted hybrid system of accounting. Tribunal cannot be said to have committed any error in approving the decision of the CIT (A), who had deleted the addition in respect of interest on NPAs. - Decided in favour of assessee
|