2017 (5) TMI 1583 - HC - Income Tax

Treatment of interest on Non Performing Assets (NPAs) - Revenue contends that given the obligation of the assessee to maintain books in accordance with Section 209 of the Companies Act 1956 on accrual basis it had to reflect the interest accrued upon unpaid loans (NPAs) - Held that - Interest on sticky loans and advances could not be charged to tax - The issue stands covered in favour of the Assessee and against the Revenue. SEE GE MONEY FINANCIAL SERVICES PVT. LTD. VERSUS DCIT CIRCLE-12 (1) NEW DELHI. 2016 (7) TMI 1396 - DELHI HIGH COURT and PR. COMMISSIONER OF INCOME TAX-4 VERSUS GE MONEY FINANCIAL SERVICES PVT. LTD. 2017 (2) TMI 1361 - DELHI HIGH COURT

Summary

The High Court of Delhi dismissed the appeal raised by the Revenue against the order dated 8th July, 2016, passed by the Income Tax Appellate Tribunal for the Assessment Year 2009-10. The issue raised stood covered in favor of the Assessee by a previous order passed by the Court.