https://www.taxtmi.com/caselaws?id=302343 Interest on advances classified as non-performing assets was held not taxable on accrual merely because the assessee followed the mercantile system. The Tribunal applied RBI prudential norms and the accounting principle that income cannot be recognised where recovery is uncertain, noting that the bank consistently treated such interest as taxable only on receipt. It also relied on the statutory framework under section 43D and the consistency of the accounting method under section 145. The addition was therefore deleted, and interest on NPAs was brought to tax only on actual receipt. en-us Fri, 14 Jul 2017 00:00:00 +0530 Thu, 19 May 2022 20:44:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=302343 Interest on advances classified as non-performing assets was held not taxable on accrual merely because the assessee followed the mercantile system. The Tribunal applied RBI prudential norms and the accounting principle that income cannot be recognised where recovery is uncertain, noting that the bank consistently treated such interest as taxable only on receipt. It also relied on the statutory framework under section 43D and the consistency of the accounting method under section 145. The addition was therefore deleted, and interest on NPAs was brought to tax only on actual receipt. Case-Laws Income Tax Fri, 14 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=302343