2018 (1) TMI 1346

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.... Y V Raviraj, Advocate For the Respondent : None JUDGMENT This appeal is filed by the Revenue under Section 260-A of the Income Tax Act, 1961 ('the Act' for short), challenging the order dated 16.06.2017 passed by the Income Tax Appellate Tribunal, Panaji Bench, Panaji ('the Tribunal', for short) in ITA No. 132/PNJ/2017 relating to the assessment year 2011-12 raising the f....

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....held as follows: "Therefore, it is clear, if an assessee adopts the mercantile system of accounting and in his accounts he shown a particular income as accruing, whether that amount is rally accrued or not is liable to bring the said income to tax. His accounts should reflect true and correct statement of affairs. Merely because the said amount accrued was not realized immediately cannot ....

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....ing Bank, the income from non-performing asset should be recognised only when it is actually received. That is what the Tribunal held in the instant case. Therefore, the contention of the Revenue that in respect of non-performing assets even though it does not yield any income as the assessee has adopted a mercantile system of accounting, he has to pay tax on the revenue which has accrued notional....