https://www.taxtmi.com/caselaws?id=757846 Section 43D applies to banks and specified institutions by deferring taxability of interest on bad or doubtful debts until the interest is credited to the profit and loss account or actually received, whichever is earlier, in line with RBI guidelines on consistent appropriation. A recovery from NPA accounts retained in sundry payable because the underlying borrower and guarantor dispute had not been finalised was not taxable merely on receipt. The amount was later appropriated as interest income in subsequent assessment years, and taxing it in the earlier year would have created double taxation. The recovery was therefore taxed only when duly appropriated and recognised as interest income. en-us Wed, 21 Aug 2024 00:00:00 +0530 Tue, 03 Sep 2024 08:27:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757846 Section 43D applies to banks and specified institutions by deferring taxability of interest on bad or doubtful debts until the interest is credited to the profit and loss account or actually received, whichever is earlier, in line with RBI guidelines on consistent appropriation. A recovery from NPA accounts retained in sundry payable because the underlying borrower and guarantor dispute had not been finalised was not taxable merely on receipt. The amount was later appropriated as interest income in subsequent assessment years, and taxing it in the earlier year would have created double taxation. The recovery was therefore taxed only when duly appropriated and recognised as interest income. Case-Laws Income Tax Wed, 21 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757846