https://www.taxtmi.com/caselaws?id=200566 For a co-operative bank, interest on loans classified as non-performing assets is not taxable on accrual basis where RBI prudential norms govern income recognition and the real income theory applies. The Tribunal accepted that, despite section 43D of the Income-tax Act, income from NPAs must be recognised only when actually received if no real income has accrued. Relying on binding judicial precedent and noting the absence of any contrary decision, it held that the addition for accrued interest on NPAs was not justified and the disallowance was deleted. en-us Tue, 20 Dec 2016 00:00:00 +0530 Thu, 05 Apr 2018 08:20:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=200566 For a co-operative bank, interest on loans classified as non-performing assets is not taxable on accrual basis where RBI prudential norms govern income recognition and the real income theory applies. The Tribunal accepted that, despite section 43D of the Income-tax Act, income from NPAs must be recognised only when actually received if no real income has accrued. Relying on binding judicial precedent and noting the absence of any contrary decision, it held that the addition for accrued interest on NPAs was not justified and the disallowance was deleted. Case-Laws Income Tax Tue, 20 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=200566