https://www.taxtmi.com/caselaws?id=356353 The SC upheld the HC decision regarding accrual of interest income on inter-corporate deposits for a Non-Banking Financial Company (NBFC). The HC correctly held that interest income cannot be considered accrued when the deposit becomes a Non-Performing Asset (NPA) under RBI Act provisions and Prudential Norms. Since the interest was not received and recovery prospects were negligible, the income had not accrued to the assessee. The SC agreed with the HC's reasoning that NBFCs are governed by RBI Act provisions, which prevent recognition of interest income on NPAs where actual receipt is doubtful and recovery is virtually impossible. en-us Wed, 13 Dec 2017 00:00:00 +0530 Thu, 17 Jul 2025 10:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=356353 The SC upheld the HC decision regarding accrual of interest income on inter-corporate deposits for a Non-Banking Financial Company (NBFC). The HC correctly held that interest income cannot be considered accrued when the deposit becomes a Non-Performing Asset (NPA) under RBI Act provisions and Prudential Norms. Since the interest was not received and recovery prospects were negligible, the income had not accrued to the assessee. The SC agreed with the HC's reasoning that NBFCs are governed by RBI Act provisions, which prevent recognition of interest income on NPAs where actual receipt is doubtful and recovery is virtually impossible. Case-Laws Income Tax Wed, 13 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356353