https://www.taxtmi.com/caselaws?id=206777 Interest on advances to a sick industrial company was treated as not having really accrued where the borrower's reference was pending before BIFR, a rehabilitation scheme had been framed, and recovery was effectively stalled under SICA. On that basis, the commentary states that such sticky interest could not be assessed as taxable income on a merely notional or hypothetical basis under the mercantile system. It also notes that approval of the accounts by the Board of Directors, together with the omission of the amount from the profit and loss account, supported the view that the interest was not being treated as income in the books and therefore was not includible in taxable income. en-us Fri, 28 Jan 2011 00:00:00 +0530 Wed, 16 Nov 2011 06:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206777 Interest on advances to a sick industrial company was treated as not having really accrued where the borrower's reference was pending before BIFR, a rehabilitation scheme had been framed, and recovery was effectively stalled under SICA. On that basis, the commentary states that such sticky interest could not be assessed as taxable income on a merely notional or hypothetical basis under the mercantile system. It also notes that approval of the accounts by the Board of Directors, together with the omission of the amount from the profit and loss account, supported the view that the interest was not being treated as income in the books and therefore was not includible in taxable income. Case-Laws Income Tax Fri, 28 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206777