https://www.taxtmi.com/caselaws?id=359700 Interest on advances classified as non-performing assets under RBI prudential norms was held not to accrue as taxable income for an NBFC where recovery remained uncertain. The Delhi HC applied the real income doctrine, holding that mere mercantile accounting cannot create taxable accrual of interest when RBI directions govern income recognition and Section 45Q of the RBI Act gives those directions overriding force. On that basis, notional interest on NPA accounts could not be added to income, and the Revenue's addition was unsustainable. en-us Tue, 01 May 2018 00:00:00 +0530 Thu, 03 May 2018 06:36:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=359700 Interest on advances classified as non-performing assets under RBI prudential norms was held not to accrue as taxable income for an NBFC where recovery remained uncertain. The Delhi HC applied the real income doctrine, holding that mere mercantile accounting cannot create taxable accrual of interest when RBI directions govern income recognition and Section 45Q of the RBI Act gives those directions overriding force. On that basis, notional interest on NPA accounts could not be added to income, and the Revenue's addition was unsustainable. Case-Laws Income Tax Tue, 01 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=359700