https://www.taxtmi.com/caselaws?id=65582 Interest on sticky loans classified as non-performing assets was held not to be taxable as income when recovery of principal and interest was objectively uncertain. Mere mercantile accounting did not require recognition of notional interest if it had not in substance accrued as real income. Section 145 governs computation of income, but it cannot expand chargeability beyond the charging provisions. The principle of prudence, supported by RBI prudential norms and NPA classification, justified postponing recognition until the income became reasonably realizable. en-us Wed, 30 Apr 2008 00:00:00 +0530 Wed, 16 Feb 2011 17:29:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65582 Interest on sticky loans classified as non-performing assets was held not to be taxable as income when recovery of principal and interest was objectively uncertain. Mere mercantile accounting did not require recognition of notional interest if it had not in substance accrued as real income. Section 145 governs computation of income, but it cannot expand chargeability beyond the charging provisions. The principle of prudence, supported by RBI prudential norms and NPA classification, justified postponing recognition until the income became reasonably realizable. Case-Laws Income Tax Wed, 30 Apr 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65582