Case Law Details
Advocate Akhilesh Kumar Sah
Credit Suisse Finance (India) P. Ltd. Appeal: When An Instrument Or An Agreement Stipulates That Interest Shall Be Payable At A Specified Date, Interest Does Not Accrue To Holder Thereof On Any Date Prior Thereto
Recently, in Credit Suisse Finance (India) P. Ltd. vs. DCIT & vice-versa [ITA No. 1435/M/2016 AY: 2011-12, ITA No.1436/M/2016 AY: 2010-11 with ITA Nos.1415 & 1416/M/2016 AYs: 2010-11 & 2011-12, decided on 21.12.2018], the cross appeals were directed against the orders passed by CIT(A)-12, Mumbai which related to Assessment Years 2010-11 & 2011-12. Since identical issues were contested in these appeals, they were heard together and were disposed of by the common order, for the sake of convenience. Apart from other issues decided in the appeal, in both the years the Revenue was aggrieved by the decision of the CIT(A) in holding that the interest accrued but not due on current investment was not taxable under accrual system of accounting.
The assessee company was a non banking financial company, the Revenue challenged the decision of CIT(A) in holding that the interest accrued but not due was not taxable.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
