Interest on Non Performing Assets which is doubtful of recovery, taxable on receipt basis

CIT Vs. Vasisth Chay Vyapar Ltd. (Delhi High Court) Interest on Non Performing Assets which is doubtful of recovery, taxable on receipt basis In a recent decision, in the case of CIT Vs. Vasisth Chay Vyapar Ltd. (Delhi High Court) [ITA 552/2005] dated 29 November, 2010, the Delhi High Court in the context of loans given by a Non-Banking Financial Company (“NBFC”) held that in a scenario where interest on Non Performing Assets (“NPA”) was doubtful of recovery due to adverse financial circumstances of the borrower, it was legitimate move to infer that interest income had ...