https://www.taxtmi.com/caselaws?id=459554 A co-operative bank may claim deduction under section 36(1)(viia) where it falls within the banking category covered by the provision and satisfies the statutory conditions, as recognised by coordinate bench decisions. Interest on non-performing assets is not taxable on accrual basis when recovery of the principal is doubtful, because such interest does not represent real income. The Tribunal therefore treated the disallowance under section 36(1)(viia) as unsustainable and held that accrued interest on NPAs could not be added, leaving the assessee's position intact on both issues. en-us Wed, 29 May 2024 00:00:00 +0530 Wed, 18 Dec 2024 12:04:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459554 A co-operative bank may claim deduction under section 36(1)(viia) where it falls within the banking category covered by the provision and satisfies the statutory conditions, as recognised by coordinate bench decisions. Interest on non-performing assets is not taxable on accrual basis when recovery of the principal is doubtful, because such interest does not represent real income. The Tribunal therefore treated the disallowance under section 36(1)(viia) as unsustainable and held that accrued interest on NPAs could not be added, leaving the assessee's position intact on both issues. Case-Laws Income Tax Wed, 29 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459554