https://www.taxtmi.com/caselaws?id=254718 Interest on NPAs was not taxable on accrual merely because it was reflected in the accounts, as banking and RBI prudential norms governed income recognition and a book entry did not by itself create taxable income; the corresponding addition was deleted. Interest credited to the Agricultural Stabilization Fund was treated as an appropriation of profits under the governing resolution and co-operative law framework, not as expenditure incurred in business, so the deduction was disallowed. The article thus contrasts receipt-based recognition for NPA interest with the non-deductible character of profit allocations to a special fund. en-us Mon, 29 Sep 2014 00:00:00 +0530 Mon, 29 Dec 2014 21:25:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=254718 Interest on NPAs was not taxable on accrual merely because it was reflected in the accounts, as banking and RBI prudential norms governed income recognition and a book entry did not by itself create taxable income; the corresponding addition was deleted. Interest credited to the Agricultural Stabilization Fund was treated as an appropriation of profits under the governing resolution and co-operative law framework, not as expenditure incurred in business, so the deduction was disallowed. The article thus contrasts receipt-based recognition for NPA interest with the non-deductible character of profit allocations to a special fund. Case-Laws Income Tax Mon, 29 Sep 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=254718