Interest on NPAs of NBFCs not Taxable on Accrual Basis: SC

CIT Vs. M/s. Vasisth Chay Vyapar Ltd. (Supreme Court of India) Hon’ble Supreme Court dismisses a departmental appeal in CIT v. Vasisth Chay Vyapar Ltd and held that the interest income earned by Non-Banking Financial Companies (NBFCs) on non-performing assets (NPAs) should not be taxed on the accrual basis. Also Read: CIT Vs. Vasisth Chay Vyapar Ltd. (Delhi High Court) FULL TEXT OF THE SUPREME COURT JUDGMENT / ORDER IS AS FOLLOWS:- Leave granted. Having gone through the impugned judgment in the aforesaid appeals, we are of the view that the consideration of the question has been given a...