Principal Commissioner passed the revision order\u00a0 on ground that he\u00a0 had failed to carry-out detailed enquiries for purpose of assessing assessee’s interest income on NPAs on accrual basis in light of recently introduced Income Computation and Disclosure Standards (ICDS) applicable from impugned assessment year onwards.\u00a0 On appeal the Tribunal held that the\u00a0 Assessing Officer issued section 143(2) notice as well as section 142(1) notice, specifically raising issue of Income Computation and Disclosure Standards \u2018ICDS\u2019 compliance. Assessee replied that interest income regarding impugned NPA advances could neither be assessed on accrual principle nor as per recently introduced \u2018ICDS\u2019. This was indeed coupled with clinching fact that a perusal of \u2018ICDS No. IV\u2019 dealing with \u2018revenue recognition\u2019 itself made it clear that \u2018in case of conflict between provisions of Income-tax Act, 1961 and ICDS; provisions of Act shall prevail to that extent. The assessee had\u00a0 succeeded on issue of accrual of interest on NPAs right up to High Court and assessee was not required to recognize its accrued interest on NPAs as income on accrual basis. Therefore, CBDT’s circular issued in tune with foregoing ICDS also would not apply. Revision order is set aside. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Method of accounting-Income Computation and Disclosure Standards (ICDS)-Accrual-NBFC Governed by RBI was not required to recognize its accrued interest on NPAs as income on accrual basis, provisions of ICDS would not be applicable<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43936","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bqE","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=43936"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43936\/revisions"}],"predecessor-version":[{"id":43937,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43936\/revisions\/43937"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}