Principal Commissioner passed the revision order  on ground that he  had failed to carry-out detailed enquiries for purpose of assessing assessee’s interest income on NPAs on accrual basis in light of recently introduced Income Computation and Disclosure Standards (ICDS) applicable from impugned assessment year onwards.  On appeal the Tribunal held that the  Assessing Officer issued section 143(2) notice as well as section 142(1) notice, specifically raising issue of Income Computation and Disclosure Standards ‘ICDS’ compliance. Assessee replied that interest income regarding impugned NPA advances could neither be assessed on accrual principle nor as per recently introduced ‘ICDS’. This was indeed coupled with clinching fact that a perusal of ‘ICDS No. IV’ dealing with ‘revenue recognition’ itself made it clear that ‘in case of conflict between provisions of Income-tax Act, 1961 and ICDS; provisions of Act shall prevail to that extent. The assessee had  succeeded on issue of accrual of interest on NPAs right up to High Court and assessee was not required to recognize its accrued interest on NPAs as income on accrual basis. Therefore, CBDT’s circular issued in tune with foregoing ICDS also would not apply. Revision order is set aside. (AY. 2017-18)