https://www.taxtmi.com/caselaws?id=328025 Income on mercantile basis is taxable only when it has really accrued in a commercial sense, so interest on loans to sick subsidiary companies was not brought to tax where recovery was doubtful and real accrual was absent. Power and fuel expenditure relating to an employees' residential colony was treated as allowable business expenditure because it was incurred to meet a business obligation connected with staff housing and amenities, and non-recovery from employees did not change its character. The Revenue's appeal therefore failed on both grounds, and the appellate relief was sustained. en-us Fri, 15 Apr 2016 00:00:00 +0530 Wed, 25 May 2016 08:24:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=328025 Income on mercantile basis is taxable only when it has really accrued in a commercial sense, so interest on loans to sick subsidiary companies was not brought to tax where recovery was doubtful and real accrual was absent. Power and fuel expenditure relating to an employees' residential colony was treated as allowable business expenditure because it was incurred to meet a business obligation connected with staff housing and amenities, and non-recovery from employees did not change its character. The Revenue's appeal therefore failed on both grounds, and the appellate relief was sustained. Case-Laws Income Tax Fri, 15 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=328025