https://www.taxtmi.com/caselaws?id=338175 Interest on non-performing assets of a co-operative bank is not treated as taxable accrual income where, in accordance with RBI directions, the asset has been classified as non-performing and the real income has not arisen. The mercantile system does not override the RBI-prescribed treatment, because the RBI framework has overriding effect under section 45Q of the Reserve Bank of India Act, 1934. The note also reflects that the assessee's method was consistent with accounting standards and that the judicial view relied upon supported non-accrual of such interest. On that basis, the NPA interest addition was deleted. en-us Fri, 20 Jan 2017 00:00:00 +0530 Wed, 25 Jan 2017 08:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338175 Interest on non-performing assets of a co-operative bank is not treated as taxable accrual income where, in accordance with RBI directions, the asset has been classified as non-performing and the real income has not arisen. The mercantile system does not override the RBI-prescribed treatment, because the RBI framework has overriding effect under section 45Q of the Reserve Bank of India Act, 1934. The note also reflects that the assessee's method was consistent with accounting standards and that the judicial view relied upon supported non-accrual of such interest. On that basis, the NPA interest addition was deleted. Case-Laws Income Tax Fri, 20 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338175