https://www.taxtmi.com/caselaws?id=354842 Interest on NPAs was held not taxable on accrual basis where a co-operative bank had not credited such interest to its profit and loss account in line with RBI prudential norms. The Tribunal applied the real income principle and noted that, when recovery of principal itself is doubtful, interest cannot be said to have truly accrued. It also accepted the binding effect of RBI directions on income recognition for sticky advances and the supporting view that notional interest on doubtful loans is not taxable. The Revenue's appeal failed and the disallowance was deleted. en-us Wed, 31 Jan 2018 00:00:00 +0530 Mon, 05 Feb 2018 09:02:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=354842 Interest on NPAs was held not taxable on accrual basis where a co-operative bank had not credited such interest to its profit and loss account in line with RBI prudential norms. The Tribunal applied the real income principle and noted that, when recovery of principal itself is doubtful, interest cannot be said to have truly accrued. It also accepted the binding effect of RBI directions on income recognition for sticky advances and the supporting view that notional interest on doubtful loans is not taxable. The Revenue's appeal failed and the disallowance was deleted. Case-Laws Income Tax Wed, 31 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=354842