https://www.taxtmi.com/caselaws?id=63558 For a registered non-banking financial company, income recognition for non-performing assets is governed by RBI prudential norms under Chapter IIIB of the Reserve Bank of India Act, 1934, and section 45Q gives those directions overriding effect over inconsistent provisions of the Income-tax Act, 1961. Applying that principle, the Tribunal held that the mercantile accrual rule under section 145 could not be used to tax lease rentals, interest and bill discounting charges, so the additions were deleted. The disallowance of repairs and maintenance was sustained because personal use of vehicles was accepted. The bad debt claim was also rejected for want of sufficient evidence that the debts had actually become irrecoverable, particularly in transactions with a sister concern. en-us Fri, 21 Mar 2003 00:00:00 +0530 Mon, 31 Jan 2011 16:58:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=63558 For a registered non-banking financial company, income recognition for non-performing assets is governed by RBI prudential norms under Chapter IIIB of the Reserve Bank of India Act, 1934, and section 45Q gives those directions overriding effect over inconsistent provisions of the Income-tax Act, 1961. Applying that principle, the Tribunal held that the mercantile accrual rule under section 145 could not be used to tax lease rentals, interest and bill discounting charges, so the additions were deleted. The disallowance of repairs and maintenance was sustained because personal use of vehicles was accepted. The bad debt claim was also rejected for want of sufficient evidence that the debts had actually become irrecoverable, particularly in transactions with a sister concern. Case-Laws Income Tax Fri, 21 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=63558