Taxability of interest credited to suspense accounts revised by CBDT withdrawing prior instruction after legal and statutory developments. A prior Board instruction exempted interest credited to suspense accounts from tax after three years without recovery; a high court judgment held interest credited to an Interest Suspense Account taxable as income and the Finance Act introduced a deduction for provisions for bad and doubtful debts made by banks. Consequently, the Board has withdrawn the earlier instruction with immediate effect and directed officers to note the withdrawal.
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Provisions expressly mentioned in the judgment/order text.
Taxability of interest credited to suspense accounts revised by CBDT withdrawing prior instruction after legal and statutory developments.
A prior Board instruction exempted interest credited to suspense accounts from tax after three years without recovery; a high court judgment held interest credited to an Interest Suspense Account taxable as income and the Finance Act introduced a deduction for provisions for bad and doubtful debts made by banks. Consequently, the Board has withdrawn the earlier instruction with immediate effect and directed officers to note the withdrawal.
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