https://www.taxtmi.com/caselaws?id=274244 The Karnataka High Court upheld the Income Tax Appellate Tribunal's decision in a case involving accrued interest on loans classified as Non-performing Assets under Section 43D of the Income Tax Act, 1961. The court ruled in favor of the assessee, emphasizing the importance of the mercantile system of accounting and the treatment of non-performing assets. It dismissed the Revenue's argument that tax should be paid on notionally accrued revenue from non-performing assets, stating that income from such assets should only be recognized when actually received, in line with National Housing Bank guidelines. en-us Tue, 30 Jan 2018 00:00:00 +0530 Fri, 03 Aug 2018 07:59:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=274244 The Karnataka High Court upheld the Income Tax Appellate Tribunal's decision in a case involving accrued interest on loans classified as Non-performing Assets under Section 43D of the Income Tax Act, 1961. The court ruled in favor of the assessee, emphasizing the importance of the mercantile system of accounting and the treatment of non-performing assets. It dismissed the Revenue's argument that tax should be paid on notionally accrued revenue from non-performing assets, stating that income from such assets should only be recognized when actually received, in line with National Housing Bank guidelines. Case-Laws Income Tax Tue, 30 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=274244