https://www.taxtmi.com/caselaws?id=221500 Interest on non-performing assets cannot be excluded from taxable income merely because RBI prudential norms classify the loans as NPAs; tax recognition and income accrual are governed separately under the Income-tax Act. Mere NPA classification does not by itself show that interest has not accrued, and the assessee must establish on the facts of each account that recovery was uncertain and income was not recognised for that reason. The matter therefore required fresh factual examination in light of the Supreme Court principles, and the earlier orders deleting accrued interest could not be sustained on the existing record. en-us Tue, 12 Feb 2013 00:00:00 +0530 Tue, 02 Jul 2013 11:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=221500 Interest on non-performing assets cannot be excluded from taxable income merely because RBI prudential norms classify the loans as NPAs; tax recognition and income accrual are governed separately under the Income-tax Act. Mere NPA classification does not by itself show that interest has not accrued, and the assessee must establish on the facts of each account that recovery was uncertain and income was not recognised for that reason. The matter therefore required fresh factual examination in light of the Supreme Court principles, and the earlier orders deleting accrued interest could not be sustained on the existing record. Case-Laws Income Tax Tue, 12 Feb 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=221500