https://www.taxtmi.com/caselaws?id=767424 ITAT Chennai held that addition of accrued interest on NPA based on balance sheet footnote was erroneous. The assessee maintained books per RBI Act norms with statutory audit, disclosing NPA interest without crediting to P&L account as required under section 45Q RBI Act. Court ruled section 43D Income Tax Act cannot override RBI Act provisions, making taxation of unrealized accrued interest legally invalid. AO and CIT(A) orders set aside, directing deletion of NPA interest addition and income recomputation. Decision favored assessee. en-us Fri, 07 Mar 2025 00:00:00 +0530 Tue, 18 Mar 2025 08:35:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767424 ITAT Chennai held that addition of accrued interest on NPA based on balance sheet footnote was erroneous. The assessee maintained books per RBI Act norms with statutory audit, disclosing NPA interest without crediting to P&L account as required under section 45Q RBI Act. Court ruled section 43D Income Tax Act cannot override RBI Act provisions, making taxation of unrealized accrued interest legally invalid. AO and CIT(A) orders set aside, directing deletion of NPA interest addition and income recomputation. Decision favored assessee. Case-Laws Income Tax Fri, 07 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767424