https://www.taxtmi.com/caselaws?id=796997 Overdue interest on non-performing assets is not treated as accrued income where RBI prudential norms indicate uncertain recovery, despite mercantile accounting. Release of a provision for non-performing assets does not fall within section 41(1) where the statutory deduction for bad and doubtful debts is not a loss, expenditure or trading liability, unless it represents recovery of an actual written-off debt. Provision for standard assets may qualify for deduction under section 36(1)(viia), subject to the statutory ceiling, and aggregate average rural advances under Rule 6ABA include opening balances and monthly outstanding advances. Quantification requires verification of the provision created. Penalty is not justified merely because a fully disclosed deduction claim is disallowed without concealment or inaccurate particulars. en-us Fri, 17 Jul 2026 00:00:00 +0530 Fri, 14 Aug 2026 07:18:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796997 Overdue interest on non-performing assets is not treated as accrued income where RBI prudential norms indicate uncertain recovery, despite mercantile accounting. Release of a provision for non-performing assets does not fall within section 41(1) where the statutory deduction for bad and doubtful debts is not a loss, expenditure or trading liability, unless it represents recovery of an actual written-off debt. Provision for standard assets may qualify for deduction under section 36(1)(viia), subject to the statutory ceiling, and aggregate average rural advances under Rule 6ABA include opening balances and monthly outstanding advances. Quantification requires verification of the provision created. Penalty is not justified merely because a fully disclosed deduction claim is disallowed without concealment or inaccurate particulars. Case-Laws Income Tax Fri, 17 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796997