The assessee did not offer the interest income on debts which remained due for past 90 days as against the period of 180 days as prescribed in Rule 6EB.The AO disallowed same and added back an amount as worked out by the assessee, in the alternative to the income of the assessee. On appeal, the CIT(A) held that NHB guidelines could not override the provisions of the act and, therefore, upheld the stand of the AO. Tribunal deleted the addition confirmed by the CIT (A).(AY. 2004-05, 2005-06)
LIC Housing Finance Ltd. (2020) 180 ITD 45 (Mum.)(Trib.)
S. 43D : Public financial institutions-NHB guidelines will not bring automatic corresponding change in rule 6EB since, discretion is left to rule making authority to follow or not follow NHB guidelines as and when they are revised–Addition is held to be not valid. [S. 145, R 6EB]