Dismissing the appeal of the revenue , assessee, a co-operative society, carrying on banking business, was not required to pay tax on interest income on bad debts/doubtful debts or Non-Performing Assets (NPAs) without such interest being actually received or credited in profit & loss account of assessee.(AY. 2009-10, 2010-11)
CIT (A) v. Bijapur District Central Co-Operative Bank Ltd (2018) 256 Taxman 51 (Karn)( HC)Editorial: SLP of revenue is dismissed ; CIT v. Bijapur District Central Co-Opertaibe Bank Ltd ( 2019) 260 Taxman 297 (SC)
S. 5 : Scope of total income – Co –operative society- Banking business- Accrual- Interest on doubtful debts or Non-Performing Assets (NPAs) without such interest being actually received or credited in profit & loss account of assessee- Not required to pay tax on interest income .[ S.43D ]