https://www.taxtmi.com/caselaws?id=198554 Interest on non-performing asset advances was held not to accrue where, under RBI prudential norms, it was not recognised in the accounts and recovery of principal had itself become doubtful. As the co-operative bank was not covered by section 43D, the issue turned on general accrual principles and real income theory; the Tribunal followed its earlier coordinate bench view and preferred the interpretation favourable to the assessee amid conflicting non-jurisdictional High Court rulings. The addition was deleted and the interest was not taxable on accrual basis. en-us Thu, 29 Jan 2015 00:00:00 +0530 Sat, 03 Feb 2018 08:12:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=198554 Interest on non-performing asset advances was held not to accrue where, under RBI prudential norms, it was not recognised in the accounts and recovery of principal had itself become doubtful. As the co-operative bank was not covered by section 43D, the issue turned on general accrual principles and real income theory; the Tribunal followed its earlier coordinate bench view and preferred the interpretation favourable to the assessee amid conflicting non-jurisdictional High Court rulings. The addition was deleted and the interest was not taxable on accrual basis. Case-Laws Income Tax Thu, 29 Jan 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=198554