Bombay HC Rejects Revenue Appeal Because Interest on Securities Accrues Only on Due Date

PCIT-2 Vs Central Bank of India (Bombay High Court) The Bombay High Court dismissed the Revenue’s appeal for Assessment Year 2008-09, declining to admit the matter on the ground that no substantial question of law arose. The appeal proposed two questions: first, whether 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); and second, whether interest income on securities accrues on the due date of payment rather than on a day-to-day basis, particularly where broken period interest is c...