https://www.taxtmi.com/caselaws?id=752488 Calcutta HC ruled in favor of the assessee on three tax issues. First, regarding interest on non-performing assets (NPA), the court held that for NBFCs governed by RBI Act provisions, interest income cannot be deemed accrued when recovery possibility is nil under RBI prudential norms. Second, on section 43B deductions, interest expenses can only be deducted when actually paid, regardless of accounting method. Third, concerning recurring deposit interest, since the assessee properly offered accrued interest for taxation in assessment year 2005-06, earlier additions by the assessing officer were incorrect. The ITAT's order favoring the assessee was upheld. en-us Wed, 01 May 2024 00:00:00 +0530 Fri, 10 May 2024 11:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752488 Calcutta HC ruled in favor of the assessee on three tax issues. First, regarding interest on non-performing assets (NPA), the court held that for NBFCs governed by RBI Act provisions, interest income cannot be deemed accrued when recovery possibility is nil under RBI prudential norms. Second, on section 43B deductions, interest expenses can only be deducted when actually paid, regardless of accounting method. Third, concerning recurring deposit interest, since the assessee properly offered accrued interest for taxation in assessment year 2005-06, earlier additions by the assessing officer were incorrect. The ITAT's order favoring the assessee was upheld. Case-Laws Income Tax Wed, 01 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752488