Dismissing the appeal of the revenue the Court held that, though the assessee had used the nomenclature as provision for non-performing assets, in pith and substance, the provision had been created for bad and doubtful debts and in doing so the assessee had followed the guidelines framed by the Reserve Bank of India. Court also held that the Tribunal was right in law in deleting the interest accrued on non-performing assets from the computation of taxable income for the assessment year under consideration. ( AY.2007-08)