https://www.taxtmi.com/caselaws?id=255860 Interest income on non-performing assets was not taxable on accrual basis where recovery was doubtful, and RBI prudential norms on income recognition prevailed over mere mercantile accounting. As section 43D did not apply to the co-operative bank, the Tribunal held that interest on NPA advances could not be treated as accrued income simply because the books were maintained on an accrual basis. Following the view favourable to the assessee amid divergent non-jurisdictional decisions, the addition of NPA interest was deleted. en-us Wed, 31 Dec 2014 00:00:00 +0530 Thu, 29 Jan 2015 06:31:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=255860 Interest income on non-performing assets was not taxable on accrual basis where recovery was doubtful, and RBI prudential norms on income recognition prevailed over mere mercantile accounting. As section 43D did not apply to the co-operative bank, the Tribunal held that interest on NPA advances could not be treated as accrued income simply because the books were maintained on an accrual basis. Following the view favourable to the assessee amid divergent non-jurisdictional decisions, the addition of NPA interest was deleted. Case-Laws Income Tax Wed, 31 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=255860