Interest on NPAs not taxable on accrual basis

Bajaj Finance Limited Vs PCIT-3 (ITAT Pune) ITAT Pune held that it is settled legal position that interest on (Non-Performing Assets) NPAs cannot be taxed on accrual basis. Facts- Assessee mainly contested that the learned PCIT erred in holding that interest on NPA is taxable on accrual basis disregarding the well-settled principle of real income theory as has consistently been upheld in the Appellant’s own case by the Appellate Authorities in the earlier years. Conclusion- Delhi High Court in case of CIT Vs. Vasisth Chay Vyapar Ltd. held that interest on NPAs cannot be taxed on accrual basi...