SC Dismisses Revenue SLP Because No Substantial Question of Law Arose on Interest Accrual

PCIT-2 Vs Central Bank of India (Supreme Court of India) The matter arose from an appeal filed by the Revenue before the Bombay High Court for Assessment Year 2008-09. The Revenue proposed two substantial questions of law: (i) whether the Income Tax Appellate Tribunal (ITAT) was correct in holding that two separate provisions for rural and non-rural advances are permissible under Section 36(1)(viia) for the purpose of set-off of bad debts under Section 36(1)(vii) of the Income-tax Act, 1961; and (ii) whether the ITAT was correct in holding that interest income on securities accrues on the due ...