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| The Tax Publishers2019 TaxPub(DT) 1270 (Mum-Trib) INCOME TAX ACT, 1961
Section
Since money lent as debentures had become NPA (Non-performing Assets), an aspect which had not been challenged by revenue, therefore, as per AS-9, no interest had to be charged on such an investment, even if assessee had not waived interest by passing a Board resolution.
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Income - Accrual - Interest on ICDs - Chargeability
Assessee earned dividend income @ 5% on debentures. However, assessee had not offered interest income on the ground that concerned party had requested to waive the interest. However, AO made addition on the ground that assessee had not waived interest, as there was no such Board's resolution.Held: Money lent as debentures had become NPA (Non-performing Assets), an aspect which had not been challenged by the revenue, therefore, as per AS-9, no interest had to be charged on such an investment and no addition could be made.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09 & 2009-10
INCOME TAX ACT, 1961
Section 14
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