Interest on doubtful debts credited to suspense account by banks need not be included in taxable income.

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..... erest on doubtful debts credited to a suspense account by banks need not be included in the taxable income provided the ITO is satisfied that the recovery of the loan is practically improbable. 2. The Board, vide its letter F.No.207/16/71-ITA.II dated 29th November 1972 informed the commissioner, Delhi-I that interest on doubtful debts credited to suspense account by Industrial Finance Corporatio .....

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..... xpressed the same view in the case of State Bank of Travancore Vs.CIT, Kerala, includible in the taxable income. 4. In view of this circulars No.41(V-6) D of 1952 dated 6th October 1952 and clarifications issued in cases of financial institutions are withdrawn with immediate effect. All pending assessments may be completed keeping action by way of initiation of proceedings u/s.147(b) or sec.263 .....

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