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

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 circum

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