Case Law Details
Case Name : DIT Vs Brahamputra Capital Financial Services Ltd. (Delhi High Court)
Related Assessment Year :
Courts :
All High Courts Delhi High Court
DIT Vs Brahamputra Capital Financial Services Ltd.
High Court of Delhi
ITA Nos. 2, 170 of 2009 and 317, 1576 of 2010
A K Sikri and M L Mehta, JJ
Decided on: 18 May 2011
Counsel appeared:
Ms. Prem Lata Bansal, Sr. Advocate with Mr. Deepak Anand, Jr. Standing Counsel for the appellant.
Mr. Ajay Vohra, Advocate with Ms. Kavita Jha and Somnath Shukla, Adv. for the respondent.
Judgment
Per: A K Sikri, J:
1. In all these appeals, common questions of law are proposed which relate to different assessment years pertaining to the same assessee. The assessee herein is a Non Banking Fina...
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The approach of the Court is legal, logical and fair. When the advance itself is declared as NPA, how its interest is taxable. The Honourable High Court has rightly reconciled the conflicting provision by adopting rationale approach.
IMPORT OF THE WORDS -’EVEN THEN’ – AS APPEARING IN THE SUBJECT WRITE-UP IS NOT UNDERSTOOD. AS PER ONE’S UNDERSTANDING, THE VIEW TAKEN BY THE COURT, RIGHTLY SO, IS TO THE EFFECT THAT, WHEN RECOVERY OF THE PRINCIPAL’ ITSELF IS AT STAKE,HENCE TREATED / CATEGORISED AS ‘NPA’ AS MANDATED BY THE RBI, TO TAX ANY INTEREST ON THE GROUND OF ‘ACCRUAL’ WUULD MAKE NO LEGAL SENSE.
IMPORT OF THE WORDS -‘EVEN THEN’ – AS APPEARING IN THE SUBJECT WRITE-UP IS NOT UNDERSTOOD. AS PER ONE’S UNDERSTANDING, THE VIEW TAKEN BY THE COURT, RIGHTLY SO, IS TO THE EFFERCT THAT, WHEN RECOVERY OF TGE PRINCIPAL’ ITSELF IS AT STAKE,HENCE TREATED / CATEGORISED AS ‘NPA’ AS MANDATED BY THE RBI, TO TAX ANY INTEREST ON THE GROUND OF ‘ACCRUAL’ WUULD MAKE NO LEGAL SENSE.