https://www.taxtmi.com/caselaws?id=459106 ITAT Rajkot held that cooperative bank following mercantile accounting could recognize interest income from NPAs on actual receipt basis per RBI guidelines under sections 145 and 43D, despite using mercantile system. CIT(A) correctly deleted additions of accrued interest on NPAs. Regarding section 36(1)(viia) deduction for bad debt provisions, ITAT ruled cooperative banks are entitled to 7.5% deduction on total income regardless of whether provisions relate to rural or non-rural advances, reversing AO's disallowance. en-us Fri, 23 Dec 2022 00:00:00 +0530 Sun, 01 Dec 2024 09:34:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459106 ITAT Rajkot held that cooperative bank following mercantile accounting could recognize interest income from NPAs on actual receipt basis per RBI guidelines under sections 145 and 43D, despite using mercantile system. CIT(A) correctly deleted additions of accrued interest on NPAs. Regarding section 36(1)(viia) deduction for bad debt provisions, ITAT ruled cooperative banks are entitled to 7.5% deduction on total income regardless of whether provisions relate to rural or non-rural advances, reversing AO's disallowance. Case-Laws Income Tax Fri, 23 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459106