Unrealized Interest on borrower accounts Classified as NPA not Taxable

DCIT Vs State Bank of India (Successor to State Bank of Bikaner & Jaipur) (ITAT Mumbai)

The Ld. A.O. held that since the assessee is maintaining its books of accounts on accrual basis, the income in respect of bad and doubtful debt was required to be taxed on accrual basis except for the exceptions provided under rule 6EA of Income-Tax rules, 1962 read with Section 43D of the Act. The Ld. A.O. rejected the claim of the assessee that exceptions should be provided as per RBI guidelines and accordingly he added the amount of Rs.3,86,10,180/-being the i

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