ITAT says Interest on NPAs Cannot Be Taxed as Notional Income

In a consolidated order covering AYs 2012-13 and 2013-14, ITAT followed its earlier decisions in SBI's own case and deleted additions for interest on NPAs and non-performing investments. The Tribunal applied the real-income principle, holding that income which has not accrued in real terms cannot be taxed merely on an accrual basis.