https://www.taxtmi.com/caselaws?id=237091 The Tribunal held that no income accrued to the assessee in the assessment year 2006-07 from interest on a security deposit with MPEB. The Tribunal found that the right to receive interest was contingent upon achieving financial closure, which did not occur, leading to the forfeiture of the deposit. Citing relevant case law, the Tribunal determined that income only accrues when the right to receive it is vested in the assessee. As there was no enforceable right to the interest during the relevant assessment years, the interest did not represent real income and was not taxable. Consequently, the appeal was allowed, and the addition of interest by the AO was deleted. en-us Wed, 06 Jun 2012 00:00:00 +0530 Wed, 18 Sep 2013 06:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=237091 The Tribunal held that no income accrued to the assessee in the assessment year 2006-07 from interest on a security deposit with MPEB. The Tribunal found that the right to receive interest was contingent upon achieving financial closure, which did not occur, leading to the forfeiture of the deposit. Citing relevant case law, the Tribunal determined that income only accrues when the right to receive it is vested in the assessee. As there was no enforceable right to the interest during the relevant assessment years, the interest did not represent real income and was not taxable. Consequently, the appeal was allowed, and the addition of interest by the AO was deleted. Case-Laws Income Tax Wed, 06 Jun 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=237091