https://www.taxtmi.com/caselaws?id=259917 The court held in favor of the appellant, a joint venture company facing liquidation, regarding the taxability of interest accrued. The court emphasized that income tax is imposed on real income, not hypothetical income, and entries based on realistic prospects of realization cannot be taxed. It was noted that the Revenue had previously accepted the appellant's explanation for non-taxability of the income. Therefore, without compelling reasons, the Revenue could not treat the same income as accrued for subsequent years. The court set aside the ITAT's decision, ruling in favor of the appellant. en-us Tue, 19 May 2015 00:00:00 +0530 Tue, 26 May 2015 08:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=259917 The court held in favor of the appellant, a joint venture company facing liquidation, regarding the taxability of interest accrued. The court emphasized that income tax is imposed on real income, not hypothetical income, and entries based on realistic prospects of realization cannot be taxed. It was noted that the Revenue had previously accepted the appellant's explanation for non-taxability of the income. Therefore, without compelling reasons, the Revenue could not treat the same income as accrued for subsequent years. The court set aside the ITAT's decision, ruling in favor of the appellant. Case-Laws Income Tax Tue, 19 May 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=259917