Dismissing the appeal of the revenue the Court held that, interest on non-performing assets cannot be recognised on accrual basis. Assessee is bound by Reserve Bank of India guidelines.
PCIT v. Sarangpur Co-Operative Bank Ltd. (2018) 406 ITR 302 (Guj) (HC) Editorial: SLP is granted to revenue , PCIT v. Sarangpur Co-Operative Bank Ltd. (2018) 401 ITR 164 ( St)
S. 43D : Public financial institutions – Mercantile system of accounting — Co-Operative Bank — Interest on non-performing assets cannot be recognised on accrual basis — Assessee bound by Reserve Bank of India guidelines.[ S.145]