https://www.taxtmi.com/caselaws?id=261076 For a co-operative bank governed by RBI prudential norms, interest on non-performing assets and sticky advances is recognised only when it constitutes real income and is actually received or otherwise credited in the relevant sense. The article notes that coordinate-bench and High Court-supported decisions have applied this principle to exclude such interest from accrual-based taxation, while authorities dealing with non-banking financial companies or provision for NPAs were distinguished as not governing income recognition. Accordingly, the treatment of NPA interest depends on the applicable real income doctrine and prudential framework, rather than on a notional accrual basis. en-us Fri, 31 Oct 2014 00:00:00 +0530 Thu, 02 Jul 2015 06:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=261076 For a co-operative bank governed by RBI prudential norms, interest on non-performing assets and sticky advances is recognised only when it constitutes real income and is actually received or otherwise credited in the relevant sense. The article notes that coordinate-bench and High Court-supported decisions have applied this principle to exclude such interest from accrual-based taxation, while authorities dealing with non-banking financial companies or provision for NPAs were distinguished as not governing income recognition. Accordingly, the treatment of NPA interest depends on the applicable real income doctrine and prudential framework, rather than on a notional accrual basis. Case-Laws Income Tax Fri, 31 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=261076