TMI Blog2018 (2) TMI 1462X X X X Extracts X X X X X X X X Extracts X X X X ..... stion of law against the revenue. - I.T.A. NO.100037/2017 - - - Dated:- 29-1-2018 - MRS. S. SUJATHA AND MR. JOHN MICHAEL CUNHA, JJ. FOR THE APPELLANT : SRI.Y.V.RAVIRAJ, ADV. JUDGMENT This appeal is filed by the revenue under Section 260A of the Income Tax Act, 1961 (for short the Act ) challenging the judgment and order passed by the Income Tax Appellate Tribunal, B Bench, Bangalore (for short ITAT ) in ITA No.1594/Bang/2016 relating to the assessment year 2012-13. 2. The substantial question of law raised by the revenue is as under: 1. Whether on the facts and in the circumstances of the case and in law the Tribunal is right in deleting the additions made by the assessing authority on account of accrued interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crued and the said amount cannot be brought to tax. In the instant case, were are concerned with a non-performing asset. As the definition of non-performing asset shows an asset becomes non-performing when it ceases to yield income. Non-performing asset is an asset in respect of which interest has remained unpaid and has become past due. Once a particular asset is shown to be a non-performing asset, then the assumption is it is not yielding any revenue. When it is not yielding any revenue, the question of showing that revenue and paying tax would not arise. As is clear from the policy guidelines issued by the National Housing Bank, the income from non-performing asset should be recognized only when it is actually received. That is what the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crops. Banks should, classify an account as NPA only if the interest charged during any quarter is not serviced fully within 90 days from the end of the quarter. Further, asset classification which is separately dealt with reference to categories of non-performing assets are extracted which reads as follows: Banks are required to classify nonperforming assets further into the following three categories based on the period for which the asset has remained non-performing and the realisability of the dues: (a) Sub-standard Assets (b) Doubtful Assets (c) Loss of Assets 6. From the aforesaid, it is manifest that when an asset becomes non-performing, it ceases to yield income and once a particular asset is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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