TMI BlogThe High Court held that the assessee, a banking company, is entitled to exclude interest earned from...The High Court held that the assessee, a banking company, is entitled to exclude interest earned from securities on an accrual basis for income tax purposes. It can claim deduction of bad debts on total average outstanding rural advances without restricting it to incremental advances made during the year. Non-rural bad debts written off and debited to the reserve account can be claimed as a deduction u/s 36(1)(vii). Balances lying unclaimed with the bank for more than three years cannot be treated as income. The assessee is bound to follow the mercantile system of accounting as per the Income Tax Act, Companies Act, and RBI guidelines. The Court ruled that share listing fees are allowable as revenue expenditure and cannot be treated as capi..... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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