https://www.taxtmi.com/caselaws?id=205684 HC held for the assessee that income from non-performing assets should be recognized on a cash basis (only when actually received) rather than merely on accrual, despite the assessee following the mercantile system, and that such treatment aligns with policy guidelines and prior HC authority allowing reserve deductions under s.36(1)(viii) for financial corporations. The Court noted that accounting method compliance is subject to Central Government directions on accounting standards but affirmed that NPAs cease to yield income and may be taxed only upon receipt, deciding in favor of the assessee. en-us Mon, 01 Aug 2011 00:00:00 +0530 Thu, 21 Aug 2025 15:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=205684 HC held for the assessee that income from non-performing assets should be recognized on a cash basis (only when actually received) rather than merely on accrual, despite the assessee following the mercantile system, and that such treatment aligns with policy guidelines and prior HC authority allowing reserve deductions under s.36(1)(viii) for financial corporations. The Court noted that accounting method compliance is subject to Central Government directions on accounting standards but affirmed that NPAs cease to yield income and may be taxed only upon receipt, deciding in favor of the assessee. Case-Laws Income Tax Mon, 01 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=205684