2024 (4) TMI 606

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....llant : C.S.C.,S.S.C. I.T. For the Respondent : S.K. Garg, Ashish Bansal ORDER 1. Heard Shri Gaurav Mahajan, learned counsel for the revenue and Shri Ashish Bansal, learned counsel for the assessee. 2. Present appeal has been filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as 'Act') against the judgement and order dated 24.07.2014 passed by the Inc....

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....he assessee is following mercantile system of accounting were the interest income would be considered on accrual basis." 5. On Question no. 1, Shri Gaurav Mahajan has fairly stated that the issue is squarely covered by an order of the Supreme Court in Commissioner of Income Tax, 5 Mumbai v. Essar Teleholdings Ltd. [2018] 401 ITR 445. 6. On Question no. 2, the appeal has been pressed. Shri Ga....

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....le of mercantile system of accounting applicable to it. 8. Having heard learned counsel for the parties and having perused the record, insofar as Question no. 2 is concerned, in the first place, Section 43D (a) reads as below : "(a) in the case of a public financial institution or a scheduled bank or [a cooperative bank other than a primary agricultural credit society or a primary co-o....

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....inability or unwillingness of the borrower to repay the banks dues, partly or wholly, and such debts have not been included in preceding clauses (a) to (d).]" 10. In absence of any doubt as to the status of the assessee as a State Financial Corporation and in face of the statutory scheme allowing it to account for recovery of interest on bad debts on cash basis, primarily, there is no error see....