Interest income on NPA cannot be recognized unless received

Trade link Securities Ltd. Vs. Income Tax Officer (ITAT Kolkata) In the instant case, the addition was made by AO on account of interest due to assessee for ₹19 lacs. However, the assessee did not include the same in its income on the ground that the amount of loan given to M/s ISG Traders Ltd., was Non-performing asset (NPA). As per the Non-Banking Financial Companies Prudential Norms (Reserve Bank of India) no income of interest on NPA can be identified in the books of account. Indeed, the issue for the AY 2006-07 has been decided against the assessee by the Co-ordinate Bench of this Tribu...