https://www.taxtmi.com/caselaws?id=252479 A government grant converted from loan and interest-free deposit was held to be a capital receipt because its purpose was public welfare and restoration of normal banking operations, so it was not taxable. Deduction under section 36(1)(viia) was restricted to the provision for bad and doubtful debts actually made in the books, and the excess claim failed. Interest on sticky advances and NPAs was not taxable on accrual basis for a co-operative bank, as RBI prudential norms and the real income principle showed no true accrual where recovery was doubtful, so the addition was deleted. en-us Tue, 14 Oct 2014 00:00:00 +0530 Tue, 19 May 2015 17:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=252479 A government grant converted from loan and interest-free deposit was held to be a capital receipt because its purpose was public welfare and restoration of normal banking operations, so it was not taxable. Deduction under section 36(1)(viia) was restricted to the provision for bad and doubtful debts actually made in the books, and the excess claim failed. Interest on sticky advances and NPAs was not taxable on accrual basis for a co-operative bank, as RBI prudential norms and the real income principle showed no true accrual where recovery was doubtful, so the addition was deleted. Case-Laws Income Tax Tue, 14 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=252479