Accrued interest on non-performing assets: prior binding decision led to dismissal of the Revenue's appeal.

Accrued interest on loans classified as non-performing assets was considered in light of section 43D of the Income-tax Act. The controversy was identical to an earlier appeal already decided in favour of the assessee, and the Court applied that binding prior decision to the same issue. As a result, the Revenue's appeal was dismissed and the addition was not sustained.

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Issues: Whether addition of accrued interest on loans classified as non-performing assets was liable to be sustained in the light of section 43D of the Income-tax Act, 1961.

Analysis: The issue raised in the appeal was identical to an earlier appeal already decided by the Court in favour of the assessee. The parties agreed that the controversy was the same, and the earlier decision governed the present matter.

Conclusion: The appeal by the Revenue was dismissed and the addition was not sustained.

Final Conclusion: The substantive question stood concluded against the Revenue in view of the prior binding decision on the same issue, resulting in dismissal of the appeal.

Ratio Decidendi: Where the same question of law concerning accrual taxation of interest on non-performing assets has already been answered in favour of the assessee, a later appeal on the identical issue is liable to be dismissed.

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