2014 (11) TMI 185 - HC - Income Tax

Delhi HC Admits Case on Taxation of Interest on Non-Performing Assets

The Delhi HC admitted the case involving taxation of interest accrued but not paid by a cooperative bank on non-performing assets. The court framed a ... Admission of appeal – Substantial question of law framed – Held that:- Following substantial question of law framed for adjudication - Whether the Tribunal was right in holding that the assessee, a cooperative bank, is entitled to exclude interest accrued but not paid for the purpose of taxation on assets shown under the heading ‘non-performing assets’ as per the guidelines issued by the Reserve Bank of India. The Delhi High Court admitted the case and framed a substantial question of law regarding the taxation of interest accrued but not paid by a cooperative bank on non-performing assets. The court granted liberty to file documents and apply for early hearing after a decision by the Supreme Court in a related appeal. The Revenue contended that a previous decision would not be applicable as the bank is a cooperative bank not covered by a specific section of the Reserve Bank Act.