https://www.taxtmi.com/caselaws?id=202354 An NBFC following RBI prudential norms was required to recognise revenue only where recovery was reasonably certain, and interest on an inter-corporate deposit classified as an NPA had remained unrealised for years with principal recovery itself doubtful. On those facts, the Court applied the real income principle and section 45Q of the RBI Act to hold that no taxable income had accrued. Southern Technologies was distinguished because it concerned deductibility of an NPA provision, not income recognition on these facts. The addition was therefore unsustainable and the revenue's appeals were dismissed. en-us Mon, 29 Nov 2010 00:00:00 +0530 Tue, 26 Aug 2025 12:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=202354 An NBFC following RBI prudential norms was required to recognise revenue only where recovery was reasonably certain, and interest on an inter-corporate deposit classified as an NPA had remained unrealised for years with principal recovery itself doubtful. On those facts, the Court applied the real income principle and section 45Q of the RBI Act to hold that no taxable income had accrued. Southern Technologies was distinguished because it concerned deductibility of an NPA provision, not income recognition on these facts. The addition was therefore unsustainable and the revenue's appeals were dismissed. Case-Laws Income Tax Mon, 29 Nov 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=202354