https://www.taxtmi.com/caselaws?id=338175 Interest on non-performing assets of a co-operative bank does not accrue as taxable income under the mercantile system where RBI directions classify the assets as non-performing and no real income has arisen. The RBI framework, supported by its overriding statutory effect and applicable accounting standards, governs recognition of such interest. Scheduled-bank status supports application of that framework. Consequently, an addition for accrued interest on non-performing assets is unsustainable where interest is recognised in accordance with RBI directions, and deletion of the addition is upheld. 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 does not accrue as taxable income under the mercantile system where RBI directions classify the assets as non-performing and no real income has arisen. The RBI framework, supported by its overriding statutory effect and applicable accounting standards, governs recognition of such interest. Scheduled-bank status supports application of that framework. Consequently, an addition for accrued interest on non-performing assets is unsustainable where interest is recognised in accordance with RBI directions, and deletion of the addition is upheld. Case-Laws Income Tax Fri, 20 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338175