That the said Association will apply to the Central Board of Direct Taxes, Ministry of Finance (Department of Revenue), New Delhi, three months in advance before the expiry of the approval for further extension. Applications received after the date of expiry of approval are liable to be rejected.
Provided that the benefit under the said clause shall be admissible in the case of transfer of such bonds, by endorsement or delivery, if the transferee informs the said Corporation by registered post within a period of sixty days of such transfer.
Circular : No. 491-Income Tax The Supreme Court has in its judgment in the case of State Bank of Travancore v. CIT [1986] 158 ITR 102 held that the interest accruing on sticky loans is taxable to income-tax on accrual basis where the assessee follows the mercantile system of accounting.
