https://www.taxtmi.com/caselaws?id=167169 Interest on non-performing assets was held not taxable on accrual basis where the cooperative bank, applying RBI prudential income-recognition norms, had not credited the interest as income and recovery of the principal remained doubtful. The Tribunal treated section 43D as inapplicable because the assessee was not a specified entity, but applied the real income principle and section 45Q of the RBI Act to conclude that mercantile accounting could not create accrual of unrealised interest. It distinguished Southern Technologies as dealing with provisioning deductions, and followed Vasisth Chay Vyapar to support exclusion of such interest from total income. en-us Thu, 10 Mar 2011 00:00:00 +0530 Wed, 26 Nov 2025 15:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=167169 Interest on non-performing assets was held not taxable on accrual basis where the cooperative bank, applying RBI prudential income-recognition norms, had not credited the interest as income and recovery of the principal remained doubtful. The Tribunal treated section 43D as inapplicable because the assessee was not a specified entity, but applied the real income principle and section 45Q of the RBI Act to conclude that mercantile accounting could not create accrual of unrealised interest. It distinguished Southern Technologies as dealing with provisioning deductions, and followed Vasisth Chay Vyapar to support exclusion of such interest from total income. Case-Laws Income Tax Thu, 10 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=167169