https://www.taxtmi.com/caselaws?id=198582 Interest on non-performing assets and sticky loans of a co-operative bank was treated as taxable only on receipt basis, because the real income theory and RBI income-recognition directions prevented accrual until actual receipt. The Tribunal noted that RBI norms prevail for co-operative banks under Section 45Q of the RBI Act, and that the assessee's mercantile method and Section 145 of the Income-tax Act did not override those mandatory directions. The applicable accounting standard and prior judicial decisions supported this treatment, so unrealised interest on NPAs was not brought to tax on accrual. en-us Tue, 31 Jan 2017 00:00:00 +0530 Mon, 05 Feb 2018 07:04:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=198582 Interest on non-performing assets and sticky loans of a co-operative bank was treated as taxable only on receipt basis, because the real income theory and RBI income-recognition directions prevented accrual until actual receipt. The Tribunal noted that RBI norms prevail for co-operative banks under Section 45Q of the RBI Act, and that the assessee's mercantile method and Section 145 of the Income-tax Act did not override those mandatory directions. The applicable accounting standard and prior judicial decisions supported this treatment, so unrealised interest on NPAs was not brought to tax on accrual. Case-Laws Income Tax Tue, 31 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=198582