https://www.taxtmi.com/caselaws?id=325091 The tribunal upheld the CIT(A)'s decision that interest on Non-Performing Assets (NPAs) should not be taxed on an accrual basis if recovery is doubtful. The tribunal emphasized following RBI guidelines for income recognition, asset classification, and provisioning over the Income-Tax Act provisions. It was held that interest on NPAs, not credited to the profit & loss account, should not be included in the assessee's income. The appeal by the revenue was dismissed, and the additions made by the Assessing Officer were directed to be deleted, supporting the cooperative bank's method of accounting for interest on NPAs. en-us Thu, 28 Jan 2016 00:00:00 +0530 Thu, 10 Mar 2016 08:18:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=325091 The tribunal upheld the CIT(A)'s decision that interest on Non-Performing Assets (NPAs) should not be taxed on an accrual basis if recovery is doubtful. The tribunal emphasized following RBI guidelines for income recognition, asset classification, and provisioning over the Income-Tax Act provisions. It was held that interest on NPAs, not credited to the profit & loss account, should not be included in the assessee's income. The appeal by the revenue was dismissed, and the additions made by the Assessing Officer were directed to be deleted, supporting the cooperative bank's method of accounting for interest on NPAs. Case-Laws Income Tax Thu, 28 Jan 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=325091