https://www.taxtmi.com/caselaws?id=184214 Interest on non-performing assets of a non-banking financial company was not taxable on accrual merely because the assessee followed the mercantile system of accounting. The Tribunal applied the jurisdictional High Court's ruling in the assessee's own case and noted the Delhi High Court's later view, both of which held that such interest can be brought to tax only when the income is recognised under prudential norms. The presence of mercantile accounting did not override the treatment required for non-performing assets. Accordingly, the interest on the non-performing assets was held not assessable on accrual basis in the assessee's hands. en-us Thu, 16 Dec 2010 00:00:00 +0530 Sat, 02 Jul 2016 15:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184214 Interest on non-performing assets of a non-banking financial company was not taxable on accrual merely because the assessee followed the mercantile system of accounting. The Tribunal applied the jurisdictional High Court's ruling in the assessee's own case and noted the Delhi High Court's later view, both of which held that such interest can be brought to tax only when the income is recognised under prudential norms. The presence of mercantile accounting did not override the treatment required for non-performing assets. Accordingly, the interest on the non-performing assets was held not assessable on accrual basis in the assessee's hands. Case-Laws Income Tax Thu, 16 Dec 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184214