related to the addition of ` 12,52,25,946/-
relating overdue interest on Non performing assets. This issue is involved
for the assessment year ... assessee has debited a sum of `
12,52,25,946/- towards overdue interest to P&L account in the balance
sheet. On scrutiny
that the NPA interest income has to be
recognized only on realization and the interest income shown under the
head "Overdue Interest Reserve Account ... Overdue
Interest Reserve Account", being the amount of interest on NPAs. In other
words, instead of neteting of the interest the two amounts have
interest income
including the unrealised interest income under the P & L Account. In respect of the
interest income in respect of overdue loan accounts ... same becomes overdue. II
4. The appellant being governed by RBI norms has been consistently making a
provision for overdue interest
action disallowing/adding the
provision(s) for overdue interest sums amounting to Rs.1,69,27,607/- and
Rs.5,76,56,515/- in respective ... discussion on the above
stated sole issue of disallowance/addition of overdue interest in former assessment
year reads as follows :
"3.2 Ground
demanded, you shall pay additional interest at rate of 2% above the
interest rate for the Facility, on the overdue interest, principal
amount, costs, charges ... failure to
pay the interest on due dates, to debit the overdue interest on the
Borrower's Loan and capitalize the amount of such
payment of the instalments in terms of the agreement, the overdue interest payable and
the other payments apparently due under the agreement.
Pursuant ... account of overdue interest and interest on the component of the defaulted instalments
which remain unpaid, will also carry no interest.
Three figures of some
core issue
raised in this appeal relates to disallowance of interest overdue provision
amounting to Rs.1,16,55,721/-. During the assessment proceedings ... proceed to extract the same as under :
"7. Disallowance of Interest overdue provision : The assessee had claimed
interest overdue provision amounting
Galva for Overdue Amounts of
Uttam Galva, another payment to the lenders of KSS
Petron constituting Overdue Amounts in KSS Petron
and Overdue Amounts ... crores in principal and interest and Rs.
1,688.27 crores in penal interest and other charges
and such other additional Overdue Amounts which
have accrued
account of recovery of NPA and
overdue interest reserves amounting to Rs.57,08,000/- on
account of recovery of overdue interest on NPA ignoring ... recovery of NPA amounting to
Rs.11,16,02,000/- and overdue interest reserves
amounting to Rs.57,08,000/- on account of recovery
Bullet Jewel loan provision E21,45,389/-
(vii) Overdue interest reserves E1,50,99,621/-
Total E9,73,86,004/-
Submission was that, assessee ... sundry
debtors over three years, bullet jewel loan provision, overdue interest
reserves and NPA provisions. Contention of the ld. Authorised
Representative was that nomenclature
