2018 (2) TMI 1462

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.... : SRI.Y.V.RAVIRAJ, ADV. JUDGMENT This appeal is filed by the revenue under Section 260A of the Income Tax Act, 1961 (for short the 'Act') challenging the judgment and order passed by the Income Tax Appellate Tribunal, "B" Bench, Bangalore (for short "ITAT") in ITA No.1594/Bang/2016 relating to the assessment year 2012-13. 2. The substantial question of law raised by the revenue is as und....

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....en followed by yet another Coordinate Bench of this Court in the case of The Commissioner of Income Tax and another Vs. Shri Siddeshwar Co-Operative Bank Limited and others in ITA No.200002/2015 and connected matters (DD 22nd June 2016). 4. This Court in Canfin Homes Limited (supra), has held as under: "Therefore, it is clear, if an assessee adopts the mercantile system of accounting and in ....

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....aid and has become past due. Once a particular asset is shown to be a non-performing asset, then the assumption is it is not yielding any revenue. When it is not yielding any revenue, the question of showing that revenue and paying tax would not arise. As is clear from the policy guidelines issued by the National Housing Bank, the income from non-performing asset should be recognized only when it ....

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....ses to generate income for the bank. A "non-performing asset" (NPA) is a loan or an advance where: (i) the interest and / or instalment of principal remain overdue for a period of more than 90 days in respect of a term loan; (ii) the account remains "out of order" for a period of more than 90 days as indicated below, in respect of an Overdraft/Cash Credit (OD/CC); (iii) the bill remain....