Taxability of interest on doubtful debts: interest recognised on mercantile basis is taxable despite being credited to a suspense account. Interest on doubtful debts credited to a suspense account remains includible in total income when accounts are kept on a mercantile basis; prior Board circulars and institutional clarifications permitting exclusion are withdrawn, and reassessment or revision proceedings may be initiated where earlier assessments followed the withdrawn guidance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxability of interest on doubtful debts: interest recognised on mercantile basis is taxable despite being credited to a suspense account.
Interest on doubtful debts credited to a suspense account remains includible in total income when accounts are kept on a mercantile basis; prior Board circulars and institutional clarifications permitting exclusion are withdrawn, and reassessment or revision proceedings may be initiated where earlier assessments followed the withdrawn guidance.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
