https://www.taxtmi.com/caselaws?id=236875 RBI prudential norms do not by themselves govern taxability under the Income-tax Act; accrual must be tested on real income principles and the facts of each transaction. The discussion notes that waived interest on an inter-corporate deposit may be excluded if genuine settlement and non-accrual are shown, interest on NPAs cannot be taxed merely because it is not recognised in accounts, and character of receipts depends on the underlying arrangement and accounting treatment. It also states that notional interest on pledged shares lacks basis without contractual entitlement, bad debts are allowable on actual write-off, reversal of NPA provisions is taxable only to the extent earlier allowed, and interest on income-tax refund is taxable as income from other sources. en-us Wed, 14 Aug 2013 00:00:00 +0530 Wed, 11 Sep 2013 09:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=236875 RBI prudential norms do not by themselves govern taxability under the Income-tax Act; accrual must be tested on real income principles and the facts of each transaction. The discussion notes that waived interest on an inter-corporate deposit may be excluded if genuine settlement and non-accrual are shown, interest on NPAs cannot be taxed merely because it is not recognised in accounts, and character of receipts depends on the underlying arrangement and accounting treatment. It also states that notional interest on pledged shares lacks basis without contractual entitlement, bad debts are allowable on actual write-off, reversal of NPA provisions is taxable only to the extent earlier allowed, and interest on income-tax refund is taxable as income from other sources. Case-Laws Income Tax Wed, 14 Aug 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=236875