https://www.taxtmi.com/caselaws?id=279887 Interest on non-performing assets was treated as not accruing for tax purposes where the co-operative bank followed mercantile accounting but, in accordance with binding RBI directions, did not recognise such income. The overriding effect of the RBI regime under section 45Q of the Reserve Bank of India Act, 1934, read with the treatment under section 43D of the Income-tax Act, supported the view that mere mercantile bookkeeping does not create taxable accrual when interest on NPAs is not recorded as income. On that basis, the addition was deleted and the Revenue's challenge failed. en-us Thu, 08 Mar 2018 00:00:00 +0530 Wed, 10 Apr 2019 06:12:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279887 Interest on non-performing assets was treated as not accruing for tax purposes where the co-operative bank followed mercantile accounting but, in accordance with binding RBI directions, did not recognise such income. The overriding effect of the RBI regime under section 45Q of the Reserve Bank of India Act, 1934, read with the treatment under section 43D of the Income-tax Act, supported the view that mere mercantile bookkeeping does not create taxable accrual when interest on NPAs is not recorded as income. On that basis, the addition was deleted and the Revenue's challenge failed. Case-Laws Income Tax Thu, 08 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279887