https://www.taxtmi.com/caselaws?id=193483 Interest allegedly accrued on non-performing assets of an NBFC cannot be taxed merely because the assessee follows the mercantile system; the decisive enquiry is whether real income in fact accrued in light of collectibility and uncertainty of recovery. Applying Southern Technologies Ltd., the RBI prudential directions were treated as operating in a different field from the Income-tax Act, but the Assessing Officer had not examined whether the advances had become non-performing assets or whether interest was actually recognisable. The addition was therefore not finally sustainable on the existing findings, and the matter required reconsideration by the Assessing Officer under the real income principle. en-us Tue, 05 Oct 2010 00:00:00 +0530 Tue, 01 Aug 2017 13:14:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193483 Interest allegedly accrued on non-performing assets of an NBFC cannot be taxed merely because the assessee follows the mercantile system; the decisive enquiry is whether real income in fact accrued in light of collectibility and uncertainty of recovery. Applying Southern Technologies Ltd., the RBI prudential directions were treated as operating in a different field from the Income-tax Act, but the Assessing Officer had not examined whether the advances had become non-performing assets or whether interest was actually recognisable. The addition was therefore not finally sustainable on the existing findings, and the matter required reconsideration by the Assessing Officer under the real income principle. Case-Laws Income Tax Tue, 05 Oct 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193483