Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 1152 - HC - Income TaxIncome recognition - interest income on 'non-performing assets' - AS 9 - for determination of NPA relevant is three years' period as per CBDT circular dated 09.10.1984 OR 6 months as per RBI notification dated dated 31.01.1998 / MCA notification dated 26.07.2001 - HELD THAT:- In this appeal, we are concerned about the assessment year 2004-05. Therefore, the circular of the CBDT dated 09.10.1984, should not have been applied, as by then the statutory direction issued by the Reserve Bank of India dated 31.01.1998 was in vogue and held the field. That apart, the Ministry of Law, Justice and Company Affairs issued a notification dated 26.07.2001, in exercise of the powers conferred under Section 637 A(1) of the Companies Act, 1956. In our view, the decision which should have been applied by the Tribunal to the facts of the present case is the decision in Elgi Finance Ltd. [2007 (6) TMI 180 - MADRAS HIGH COURT] where there is a specific reference to AS-9. In fact, this aspect has been noted by the Assessing Officer himself in paragraph 1 of the assessment order dated 29.12.2006. In any event, we are concerned with the assessment year 2004-05 and what is required to be seen is whether the assessee has got non-performing asset in terms of the definition in the notification issued by Ministry of Law, Justice and Company Affairs dated 26.07.2001. Needless to state that the applicability of the said notification can also be considered while undertaking such an exercise. For the above reasons, the appeal filed by the assessee is allowed
|