2014 (6) TMI 78

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..... Meena, A.M. 1. The Revenue's appeal is emanating from the order of CIT(A)-XX, Ahmedabad dated 31.01.2011 for A.Y. 2007-08. 2. The sole ground of Revenue appeal is against deleting the addition of Rs. 11,93,810/- made by the A.O on account of estimation of income from FDR, Visnagar Bank. The A.O observed that Assessee had FDR of Rs. 1,90,38,100/- in Visnagar Bank. But no interest income from th....

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....' view of the above, the chances of recovery of the principal amount of the FDR made-by the appellant with Visnagar Nagrik Sahakari Bank Ltd., was doubtful. When the recovery of the principal amount itself was doubtful, then, the question of recovery of interest was almost impossible. In such a situation, the appellant was justified in not accounting the interest income on accrual basis in the....