https://www.taxtmi.com/caselaws?id=409562 Interest on sticky loans or non-performing assets of a co-operative bank following the mercantile system is taxable only on receipt, because doubtful income is governed by the real income principle and RBI norms for recognition. The Tribunal followed earlier coordinate bench rulings on identical facts, noted that no contrary High Court or Supreme Court authority was shown, and held that mercantile accounting alone does not require accrual taxation where recovery is uncertain. The addition made on accrual basis was therefore deleted and the assessee's position was sustained. en-us Tue, 08 Jun 2021 00:00:00 +0530 Fri, 23 Jul 2021 10:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=409562 Interest on sticky loans or non-performing assets of a co-operative bank following the mercantile system is taxable only on receipt, because doubtful income is governed by the real income principle and RBI norms for recognition. The Tribunal followed earlier coordinate bench rulings on identical facts, noted that no contrary High Court or Supreme Court authority was shown, and held that mercantile accounting alone does not require accrual taxation where recovery is uncertain. The addition made on accrual basis was therefore deleted and the assessee's position was sustained. Case-Laws Income Tax Tue, 08 Jun 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=409562