https://www.taxtmi.com/caselaws?id=331793 Interest on non-performing assets of a co-operative bank was held not to accrue for tax purposes where recovery was doubtful and the amount had not been credited to the profit and loss account. The Tribunal applied the real income principle, noting that mercantile accounting did not by itself create taxable accrual when the advances had been classified as NPAs under RBI prudential norms. Section 43D was held not to govern the matter in the manner argued by the Revenue, and the addition based on notional interest was found unsustainable. en-us Wed, 27 Jul 2016 00:00:00 +0530 Fri, 02 Sep 2016 12:27:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331793 Interest on non-performing assets of a co-operative bank was held not to accrue for tax purposes where recovery was doubtful and the amount had not been credited to the profit and loss account. The Tribunal applied the real income principle, noting that mercantile accounting did not by itself create taxable accrual when the advances had been classified as NPAs under RBI prudential norms. Section 43D was held not to govern the matter in the manner argued by the Revenue, and the addition based on notional interest was found unsustainable. Case-Laws Income Tax Wed, 27 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331793