Transfer-pricing treatment of ITeS margins excludes pass-through tax recoveries and separate delayed-receivables interest after working-capital adjust...
Capacity-utilisation adjustments under TNMM can neutralise substantiated COVID-related idle costs where underutilisation materially affects profitabil...
TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
Transfer-pricing comparability requires exclusion of financially illogical super-profit comparables and correction of unsupported annual-report and ma...
Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
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Section 43D is a non-obstante and special provision regarding income by way of interest on bad or doubtful debts. It states that such interest income shall be chargeable to tax in the previous year in which it is credited to the profit and loss account or actually received, whichever is earlier. The assessee bank appropriated and recognized interest income of Rs. 1,20,87,000/- on 13/05/2015 (A.Y. 2016-17) and 31/03/2017 (A.Y. 2017-18) from recovery of NPAs after prolonged litigation. The ITAT held that the word 'credited' in Section 43D should be understood in the context of recognition and appropriation as per RBI guidelines and the Indian Contract Act, 1872. Since the assessee appropriately recognized the interest income in the relevant assessment years after clearing litigation clouds, the provisions of Section 43D were complied with. Accordingly, the CIT(A)'s order was set aside, and the assessee's appeal was allowed.
Section 43D is a non-obstante and special provision regarding income by way of interest on bad or doubtful debts. It states that such interest income shall be chargeable to tax in the previous year in which it is credited to the profit and loss account or actually received, whichever is earlier. The assessee bank appropriated and recognized interest income of Rs. 1,20,87,000/- on 13/05/2015 (A.Y. 2016-17) and 31/03/2017 (A.Y. 2017-18) from recovery of NPAs after prolonged litigation. The ITAT held that the word 'credited' in Section 43D should be understood in the context of recognition and appropriation as per RBI guidelines and the Indian Contract Act, 1872. Since the assessee appropriately recognized the interest income in the relevant assessment years after clearing litigation clouds, the provisions of Section 43D were complied with. Accordingly, the CIT(A)'s order was set aside, and the assessee's appeal was allowed.
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