Notional Interest Income Not Taxable under Real Income principle: ITAT Mumbai

ACIT Vs Kesar Terminals and Infrastructure Ltd. (ITAT Mumbai) The Mumbai Income Tax Appellate Tribunal (ITAT) recently delivered a significant ruling in the case of ACIT vs Kesar Terminals and Infrastructure Ltd. The case pertained to the taxation of notional interest income credited to the profit and loss account in accordance with Indian Accounting Standards (IND-AS). The ITAT’s decision sheds light on the taxation of such income under the real income principle. The crux of the matter lay in whether the notional interest, credited by the assessee in compliance with accounting standards...