https://www.taxtmi.com/caselaws?id=257669 Interest on non-performing asset advances of a co-operative bank was not taxable on accrual basis where section 43D did not apply and income recognition had to be tested on general accrual principles. Applying Reserve Bank of India prudential norms, reinforced by section 45Q of the Reserve Bank of India Act, 1934, the governing real income principle required that doubtful interest on a non-performing principal debt could not be treated as having truly accrued. Following the view favourable to the assessee amid conflicting non-jurisdictional High Court authorities, the addition was held unsustainable. en-us Fri, 31 Oct 2014 00:00:00 +0530 Thu, 19 Mar 2015 07:57:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=257669 Interest on non-performing asset advances of a co-operative bank was not taxable on accrual basis where section 43D did not apply and income recognition had to be tested on general accrual principles. Applying Reserve Bank of India prudential norms, reinforced by section 45Q of the Reserve Bank of India Act, 1934, the governing real income principle required that doubtful interest on a non-performing principal debt could not be treated as having truly accrued. Following the view favourable to the assessee amid conflicting non-jurisdictional High Court authorities, the addition was held unsustainable. Case-Laws Income Tax Fri, 31 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=257669