https://www.taxtmi.com/caselaws?id=260050 Interest on NPA advances was held not to accrue as real income under RBI prudential norms, so it could not be taxed on accrual basis merely because the co-operative bank followed the mercantile system. The Tribunal preferred the assessee-favourable view in the absence of any jurisdictional High Court ruling and in light of divergent non-jurisdictional authorities. It also held that section 145 could not compel taxation of income that had not actually accrued. The addition was therefore deleted and the deletion sustained. en-us Wed, 29 Apr 2015 00:00:00 +0530 Sat, 30 May 2015 11:15:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=260050 Interest on NPA advances was held not to accrue as real income under RBI prudential norms, so it could not be taxed on accrual basis merely because the co-operative bank followed the mercantile system. The Tribunal preferred the assessee-favourable view in the absence of any jurisdictional High Court ruling and in light of divergent non-jurisdictional authorities. It also held that section 145 could not compel taxation of income that had not actually accrued. The addition was therefore deleted and the deletion sustained. Case-Laws Income Tax Wed, 29 Apr 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=260050