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are kept on a mercantile basis; prior Board circulars and institutional clarifications permitting exclusion are withdrawn, and reassessment or revision proceedings may be initiated where earlier assessments followed the withdrawn guidance.

---

---

---