https://www.taxtmi.com/caselaws?id=261077 Interest on sticky loans and non-performing assets of a co-operative bank was not taxable on accrual basis where recovery was doubtful and the bank, following RBI-based prudential norms, recognised such income only on receipt and did not credit it to profit and loss. The Tribunal held that real income principles and the accounting treatment aligned with banking regulations prevailed over a mere mercantile accounting claim, and that section 43D did not alter this position on the facts. The addition for notional interest was therefore unsustainable, and the assessee succeeded on the issue. en-us Wed, 29 Apr 2015 00:00:00 +0530 Thu, 02 Jul 2015 10:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=261077 Interest on sticky loans and non-performing assets of a co-operative bank was not taxable on accrual basis where recovery was doubtful and the bank, following RBI-based prudential norms, recognised such income only on receipt and did not credit it to profit and loss. The Tribunal held that real income principles and the accounting treatment aligned with banking regulations prevailed over a mere mercantile accounting claim, and that section 43D did not alter this position on the facts. The addition for notional interest was therefore unsustainable, and the assessee succeeded on the issue. Case-Laws Income Tax Wed, 29 Apr 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=261077