Dismissing the appeal of the revenue the Court held that , assessee a Co-operative Bank which followedmercantile system of accounting is not liable to be taxed on notional interest on non-performing assets.
PCIT v. Sarangpur Co-operative Bank Ltd. (2018) 258 Taxman 230 (Guj.)(HC)
S. 5 : Scope of total income -Accrual- Mercantile system of accounting -Not liable to be taxed on notional interest on non-performing assets. [ S. 145 ]