https://www.taxtmi.com/caselaws?id=254011 Interest on non-performing assets of a co-operative bank was held not to accrue for tax purposes on the mercantile system where the bank was outside section 43D but bound by RBI prudential norms. The Tribunal applied the real income principle and accepted that interest on doubtful advances does not arise as taxable income when recovery is uncertain. In the absence of a jurisdictional High Court ruling and faced with conflicting non-jurisdictional authorities, the view favourable to the assessee was adopted. The addition made on accrual basis was therefore deleted. en-us Thu, 31 Oct 2013 00:00:00 +0530 Tue, 09 Dec 2014 17:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=254011 Interest on non-performing assets of a co-operative bank was held not to accrue for tax purposes on the mercantile system where the bank was outside section 43D but bound by RBI prudential norms. The Tribunal applied the real income principle and accepted that interest on doubtful advances does not arise as taxable income when recovery is uncertain. In the absence of a jurisdictional High Court ruling and faced with conflicting non-jurisdictional authorities, the view favourable to the assessee was adopted. The addition made on accrual basis was therefore deleted. Case-Laws Income Tax Thu, 31 Oct 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=254011