https://www.taxtmi.com/caselaws?id=354496 For a co-operative bank treated as a banking company, RBI directions on asset classification and income recognition govern the treatment of interest on non-performing assets. Where those directions bar recognition of such interest on accrual basis, the mercantile method under the Income-tax Act does not require taxation of unrealised interest. On that basis, interest on NPAs was not taxable on accrual basis and the related addition was deleted. en-us Tue, 23 Jan 2018 00:00:00 +0530 Mon, 29 Jan 2018 17:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=354496 For a co-operative bank treated as a banking company, RBI directions on asset classification and income recognition govern the treatment of interest on non-performing assets. Where those directions bar recognition of such interest on accrual basis, the mercantile method under the Income-tax Act does not require taxation of unrealised interest. On that basis, interest on NPAs was not taxable on accrual basis and the related addition was deleted. Case-Laws Income Tax Tue, 23 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=354496