https://www.taxtmi.com/caselaws?id=302358 For a cooperative bank governed by RBI prudential norms, interest on non-performing assets was held not to accrue as real income on an accrual basis and could be taxed only on actual receipt. The Tribunal applied the real income theory, the method of accounting regularly followed, and the binding effect of RBI income-recognition directions, holding that section 145 of the Income-tax Act did not displace those norms where they operated in their field. Earlier authority, including UCO Bank, was treated as controlling, while State Bank of Travancore did not assist the Revenue. The assessee's receipt-based treatment was upheld and the appeals were dismissed. en-us Wed, 04 Oct 2017 00:00:00 +0530 Fri, 20 May 2022 19:06:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=302358 For a cooperative bank governed by RBI prudential norms, interest on non-performing assets was held not to accrue as real income on an accrual basis and could be taxed only on actual receipt. The Tribunal applied the real income theory, the method of accounting regularly followed, and the binding effect of RBI income-recognition directions, holding that section 145 of the Income-tax Act did not displace those norms where they operated in their field. Earlier authority, including UCO Bank, was treated as controlling, while State Bank of Travancore did not assist the Revenue. The assessee's receipt-based treatment was upheld and the appeals were dismissed. Case-Laws Income Tax Wed, 04 Oct 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=302358