Mere classification of Loan as NPA do not prove that there is uncertainty regarding interest income thereon

HIGH COURT OF MADRAS Commissioner of Income-tax versus Sakthi Finance Ltd. T.C. (A) NOS. 282 AND 283 OF 2007 FEBRUARY 12, 2013 JUDGMENT R. Banumathi, J. The question pertains to whether the accrued interest on non- performing assets (NPA) is assessable to income-tax. The Revenue has preferred these appeals as against the Orders dated 15.09.2006 made in INT. T.A. Nos. 4/Mds/2006 and 5/Mds/2006 respectively in respect of the assessment years 1999-2000 and 2000-2001. The appeals were admitted on the following substantial questions of law: “1. Whether on the facts and in t...