https://www.taxtmi.com/caselaws?id=5746 Whether interest on doubtful "sticky" loans kept in a suspense account, not credited to the profit and loss account, could be taxed as income turned on the binding effect of CBDT circulars issued under s 119 of the Income-tax Act. SC held that such circulars validly mitigate the rigour of the Act in specified circumstances to ensure uniform administration, are not contrary to s 145, and must be followed by departmental authorities. Applying the "real income" principle, SC ruled that unrealised interest on doubtful advances, credited only to a suspense account and not treated as profit, is not includible until actually recovered, and disagreed with earlier authority to the extent it ignored the circulars. The appeal was allowed in favour of the assessee-bank. en-us Thu, 13 May 1999 00:00:00 +0530 Tue, 28 Apr 2026 17:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5746 Whether interest on doubtful "sticky" loans kept in a suspense account, not credited to the profit and loss account, could be taxed as income turned on the binding effect of CBDT circulars issued under s 119 of the Income-tax Act. SC held that such circulars validly mitigate the rigour of the Act in specified circumstances to ensure uniform administration, are not contrary to s 145, and must be followed by departmental authorities. Applying the "real income" principle, SC ruled that unrealised interest on doubtful advances, credited only to a suspense account and not treated as profit, is not includible until actually recovered, and disagreed with earlier authority to the extent it ignored the circulars. The appeal was allowed in favour of the assessee-bank. Case-Laws Income Tax Thu, 13 May 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5746