https://www.taxtmi.com/caselaws?id=168766 Under the Indian Income-tax Act, 1922, business income had to be computed on the assessee's regularly employed mercantile system of accounting where that method provided a proper basis for deducing profits and gains. Accrued interest was therefore brought into account when it became due, even if it had not been actually received, and the taxing authority was bound to adopt that method for computation. The reasoning rejected the contention that only realised income could be taxed under the charging provisions and treated accrued but unrealised business income as chargeable when the mercantile system was regularly followed. en-us Fri, 23 Feb 1945 00:00:00 +0630 Wed, 25 Mar 2015 18:24:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168766 Under the Indian Income-tax Act, 1922, business income had to be computed on the assessee's regularly employed mercantile system of accounting where that method provided a proper basis for deducing profits and gains. Accrued interest was therefore brought into account when it became due, even if it had not been actually received, and the taxing authority was bound to adopt that method for computation. The reasoning rejected the contention that only realised income could be taxed under the charging provisions and treated accrued but unrealised business income as chargeable when the mercantile system was regularly followed. Case-Laws Income Tax Fri, 23 Feb 1945 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=168766