https://www.taxtmi.com/caselaws?id=366794 For a co-operative bank, interest on non-performing assets is recognised only on actual receipt basis where RBI prudential norms prevail over accrual accounting by virtue of section 45Q of the RBI Act, so such income is not brought to tax on accrual. Actual payment to an LIC group gratuity fund was treated as real expenditure for the exclusive benefit of employees, not a mere provision, so the deduction was allowable and the restrictions in sections 36(1)(v) and 40A(7) did not apply on these facts. en-us Wed, 05 Sep 2018 00:00:00 +0530 Mon, 10 Sep 2018 14:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=366794 For a co-operative bank, interest on non-performing assets is recognised only on actual receipt basis where RBI prudential norms prevail over accrual accounting by virtue of section 45Q of the RBI Act, so such income is not brought to tax on accrual. Actual payment to an LIC group gratuity fund was treated as real expenditure for the exclusive benefit of employees, not a mere provision, so the deduction was allowable and the restrictions in sections 36(1)(v) and 40A(7) did not apply on these facts. Case-Laws Income Tax Wed, 05 Sep 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=366794