Interest accrued on NPA not taxable in computation of Taxable Income of Bank

CIT Vs Davangere District Central Co-Operative Bank Limited (Karnataka High Court) The issue under consideration is whether Tribunal is right in deleting the interest accrued on non performing assets from the computation of taxable income for the assessment year under consideration despite the assessee maintaining mercantile system of accounting? High Court states that in the course of assessment proceedings, it was noticed that assessee had debited provision for non performing asset but in the income computation sheet the same has not been added. The assessee was given an opportunity to expla...