https://www.taxtmi.com/caselaws?id=206055 Interest on non-performing asset loans of a non-banking financial company did not constitute taxable accrual under the mercantile system where RBI prudential norms required recognition only on actual realisation. The Delhi High Court applied the doctrine of real income and treated the RBI framework governing such assets as decisive in determining whether income had accrued for tax purposes. Because recovery of principal was doubtful and interest was not entered in the accounts, no real income arose. The Revenue's challenge therefore failed, and the interest was not taxable in the relevant assessment years. en-us Wed, 18 May 2011 00:00:00 +0530 Tue, 18 Dec 2012 17:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206055 Interest on non-performing asset loans of a non-banking financial company did not constitute taxable accrual under the mercantile system where RBI prudential norms required recognition only on actual realisation. The Delhi High Court applied the doctrine of real income and treated the RBI framework governing such assets as decisive in determining whether income had accrued for tax purposes. Because recovery of principal was doubtful and interest was not entered in the accounts, no real income arose. The Revenue's challenge therefore failed, and the interest was not taxable in the relevant assessment years. Case-Laws Income Tax Wed, 18 May 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206055