https://www.taxtmi.com/caselaws?id=15056 The court clarified that interest on sticky loans for banks is taxable under the Income-tax Act, 1961. Historical circulars exempted such interest if recovery was practically impossible, but the 1984 circular subjected interest on doubtful debts to tax after a period of no recovery. Circulars issued by the Central Board of Direct Taxes were withdrawn and modified over time, ultimately subjecting interest on doubtful debts to tax under specific conditions. The judgment emphasized the importance of following these circulars for assessing taxable income, highlighting the authority of the Central Board under section 119 of the Income-tax Act. en-us Wed, 23 Jun 1999 00:00:00 +0530 Thu, 30 Jul 2009 13:33:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15056 The court clarified that interest on sticky loans for banks is taxable under the Income-tax Act, 1961. Historical circulars exempted such interest if recovery was practically impossible, but the 1984 circular subjected interest on doubtful debts to tax after a period of no recovery. Circulars issued by the Central Board of Direct Taxes were withdrawn and modified over time, ultimately subjecting interest on doubtful debts to tax under specific conditions. The judgment emphasized the importance of following these circulars for assessing taxable income, highlighting the authority of the Central Board under section 119 of the Income-tax Act. Case-Laws Income Tax Wed, 23 Jun 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15056