Dismissing the appeal of the revenue the Court held that,interest on non -performing assets though shown in books as per RBI guidelines, interest which has not accrued is held to be not assessable .( AY.2009-10)
PCIT v. Ludhiana Central Co-Op. Bank Ltd ( 2018) 305 CTR 868/ 172 DTR 1 (2019) 410 ITR 72 (P&H)(HC)
S. 43D : Public financial institutions -Real income- Co -Operative Bank – Interest on non -performing assets -Shown in books as per RBI guidelines – Interest not accrued- Not assessable [ S.4 , 5, 145, RBI Act, 1934, S. 45Q ]