2017 (10) TMI 778

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..... y a Coordinate Bench on 7th June, 2010. The point of law involved in this appeal is on disallowance by the assessing officer claim for deduction by the assessee for a sum of Rs. 2,29,60,148/- in respect of non-performing assets from its income for the assessment year 2005-06. The main reason for disallowance made by the assessing officer was that the assessee's application for registration as an N .....

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..... ad ?" We find that this question stands answered against the assessee by the Hon'ble Supreme Court in the case of Southern Technologies Limited Vs. Joint Commissioner of Income Tax reported in (2010) 320 ITR 577 (SC). In this judgment, it has been held by the Hon'ble Supreme Court:- "Therefore, in our view, the RBI Directions, 1998, though deviate from accounting practice as provided in the Co .....

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..... h presentation will not bind the authority under the Income-tax Act. Ultimately, the nature of transaction has to be examined. In each case, the authority has to examine the nature of expense/loss. Such examination and finding thereon will not depend upon presentation of expense/loss in the financial statements of the NBFC in terms of the 1998 Directions. Therefore, in our view, the RBI Directions .....

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