https://www.taxtmi.com/caselaws?id=448664 ITAT Chandigarh allowed the appeal of an Urban Co-operative Bank regarding interest accrual on NPA accounts. The AO had added interest income on NPAs to total income under mercantile accounting system, relying on CBDT Instruction No.17/2008. However, following the Kangra Central Co-operative Bank HC decision, ITAT held that Section 43D amendment by Finance Act 2017 was retrospective, requiring co-operative banks to tax interest on NPAs only on receipt basis, not accrual basis. The addition made by AO and confirmed by CIT(A) was set aside. en-us Wed, 06 Dec 2023 00:00:00 +0530 Fri, 26 Jan 2024 14:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448664 ITAT Chandigarh allowed the appeal of an Urban Co-operative Bank regarding interest accrual on NPA accounts. The AO had added interest income on NPAs to total income under mercantile accounting system, relying on CBDT Instruction No.17/2008. However, following the Kangra Central Co-operative Bank HC decision, ITAT held that Section 43D amendment by Finance Act 2017 was retrospective, requiring co-operative banks to tax interest on NPAs only on receipt basis, not accrual basis. The addition made by AO and confirmed by CIT(A) was set aside. Case-Laws Income Tax Wed, 06 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448664