https://www.taxtmi.com/caselaws?id=337698 Interest on non-performing asset accounts of a cooperative bank was treated as taxable only on receipt basis where the assessee consistently followed RBI-guided accounting and recovery of principal was doubtful. Applying the real income principle, the text states that interest cannot be said to accrue when collectability is uncertain, and RBI directions have overriding effect for co-operative banks under section 45Q of the RBI Act, so section 145 of the Income-tax Act did not compel accrual recognition. The addition based on accrual was therefore not sustainable. en-us Tue, 03 Jan 2017 00:00:00 +0530 Sat, 14 Jan 2017 07:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337698 Interest on non-performing asset accounts of a cooperative bank was treated as taxable only on receipt basis where the assessee consistently followed RBI-guided accounting and recovery of principal was doubtful. Applying the real income principle, the text states that interest cannot be said to accrue when collectability is uncertain, and RBI directions have overriding effect for co-operative banks under section 45Q of the RBI Act, so section 145 of the Income-tax Act did not compel accrual recognition. The addition based on accrual was therefore not sustainable. Case-Laws Income Tax Tue, 03 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337698