https://www.taxtmi.com/caselaws?id=293374 Interest on non-performing assets was held not taxable on mere mercantile accrual where, under RBI prudential norms, no real income had arisen. The court applied the principle in Vasisth Chay Vyapar Ltd. that prudential norms do not override the Act for deductions or exclusions, but they do govern income recognition for NPAs, including for NBFCs. On that basis, the assessee could recognise such interest on receipt basis despite section 145 of the Income-tax Act, and the Revenue's challenge failed. en-us Tue, 30 Jul 2019 00:00:00 +0530 Mon, 08 Feb 2021 06:23:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=293374 Interest on non-performing assets was held not taxable on mere mercantile accrual where, under RBI prudential norms, no real income had arisen. The court applied the principle in Vasisth Chay Vyapar Ltd. that prudential norms do not override the Act for deductions or exclusions, but they do govern income recognition for NPAs, including for NBFCs. On that basis, the assessee could recognise such interest on receipt basis despite section 145 of the Income-tax Act, and the Revenue's challenge failed. Case-Laws Income Tax Tue, 30 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=293374