Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act Interest |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Income Tax Act, 1961 (43 of 1961) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961 - Sections 145 and 119 - Interest - Accrual of - On loans advanced by the bank whose recovery is doubtful - Interest not recovered by the bank for the last three years - Bank keeping the interest in a suspense account and not bringing to its profit and loss accounts - Held, by virtue of circular dated 9.10.1984, the amount kept in the suspense account cannot be included in the taxable income of the bank - Such method of accounting is in accordance with the accounting practice followed by the bank - Central Board of Direct taxes, Circular No.F 201/21/84 TTA-II dated 09.10.1984. Issuance of circulars - By Central Board of Direct Taxes - Power of - Held, the Board has power to ensure a fair enforcement of circular - Such circulars cannot be adverse to the assessee - Further these circulars are binding on the income-tax authorities. Permitting exclusion of interest accruing to the money lender which is kept in a suspense account because of extreme unlikelihood of recovery - Held, applicable to public financial institutions - CBDT Circular dated 6.10.1952. |
Judge | Hon'ble Ms. Justice Sujata V Manohar |
Neutral Citation | 1999 INSC 248 |
Petitioner | Uco Bank, Calcutta |
Respondent | Commissioner Of Income Tax, West Bengal |
SCR | [1999] 3 S.C.R. 635 |
Judgement Date | 1999-05-13 |
Case Number | 235 |
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