https://www.taxtmi.com/caselaws?id=778203 A co-operative society's interest provision was held sustainable where Rule 22 of the Karnataka Co-operative Societies Rules required interest income to be recognised on receipt basis and interest expenditure on accrual basis; the method was therefore not an impermissible hybrid system, and the addition for excess provision of interest was deleted. Disallowances relating to bad debts, pension fund and registration provision were not finally decided because the Assessing Officer had not applied Section 40A(7)(b) and CBDT Circular No. 37/2016 to the facts; those issues were remanded for fresh adjudication after giving the assessee an opportunity of being heard. en-us Fri, 10 Jan 2025 00:00:00 +0530 Sat, 30 Aug 2025 14:18:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=778203 A co-operative society's interest provision was held sustainable where Rule 22 of the Karnataka Co-operative Societies Rules required interest income to be recognised on receipt basis and interest expenditure on accrual basis; the method was therefore not an impermissible hybrid system, and the addition for excess provision of interest was deleted. Disallowances relating to bad debts, pension fund and registration provision were not finally decided because the Assessing Officer had not applied Section 40A(7)(b) and CBDT Circular No. 37/2016 to the facts; those issues were remanded for fresh adjudication after giving the assessee an opportunity of being heard. Case-Laws Income Tax Fri, 10 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=778203