https://www.taxtmi.com/caselaws?id=357982 The High Court upheld the appeal under Section 260-A of the Income Tax Act against the Income Tax Appellate Tribunal's order for the Assessment Year 2010-2011. The Court ruled in favor of the Co-operative Society, deleting the addition of interest on non-performing assets made by the Assessing Officer. Following the decision in a relevant case, the Court held that income from NPAs should be assessed on a cash basis, not on a mercantile basis. The Court dismissed the Revenue's appeal, emphasizing that taxing interest on NPAs on an accrual basis was unjustified, especially when the asset is non-performing and not generating revenue. en-us Wed, 07 Mar 2018 00:00:00 +0530 Tue, 03 Apr 2018 06:58:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=357982 The High Court upheld the appeal under Section 260-A of the Income Tax Act against the Income Tax Appellate Tribunal's order for the Assessment Year 2010-2011. The Court ruled in favor of the Co-operative Society, deleting the addition of interest on non-performing assets made by the Assessing Officer. Following the decision in a relevant case, the Court held that income from NPAs should be assessed on a cash basis, not on a mercantile basis. The Court dismissed the Revenue's appeal, emphasizing that taxing interest on NPAs on an accrual basis was unjustified, especially when the asset is non-performing and not generating revenue. Case-Laws Income Tax Wed, 07 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=357982