https://www.taxtmi.com/caselaws?id=247115 A Government company whose share capital is held by the State Government and which provides long-term finance for industrial projects falls within the definition of a State Industrial Investment Corporation under section 43D. On that basis, it is entitled to the benefit of section 43D for interest recognition. Where the loan is classified as a non-performing asset in accordance with RBI prudential norms, interest is not required to be recognised on accrual and cannot be taxed on that basis. The Tribunal followed the statutory definition in Explanation (f) and the assessee's own earlier decision, and upheld realisation-based recognition of the disputed interest. en-us Mon, 03 Mar 2014 00:00:00 +0530 Sat, 21 Mar 2015 11:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=247115 A Government company whose share capital is held by the State Government and which provides long-term finance for industrial projects falls within the definition of a State Industrial Investment Corporation under section 43D. On that basis, it is entitled to the benefit of section 43D for interest recognition. Where the loan is classified as a non-performing asset in accordance with RBI prudential norms, interest is not required to be recognised on accrual and cannot be taxed on that basis. The Tribunal followed the statutory definition in Explanation (f) and the assessee's own earlier decision, and upheld realisation-based recognition of the disputed interest. Case-Laws Income Tax Mon, 03 Mar 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=247115