https://www.taxtmi.com/caselaws?id=182983 Interest on loans and advances to sick subsidiary companies was held not taxable on accrual basis where the subsidiaries had ceased or severely curtailed operations, recovery was doubtful, and the surrounding commercial facts showed no real possibility of receipt. The principle applied was that income is chargeable on real income, not hypothetical accrual, even under the mercantile system. Mere continuance of the loan agreements did not by itself establish accrual when the interest was unlikely to be realised. The addition was deleted. en-us Thu, 31 Jan 2013 00:00:00 +0530 Wed, 25 May 2016 16:03:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=182983 Interest on loans and advances to sick subsidiary companies was held not taxable on accrual basis where the subsidiaries had ceased or severely curtailed operations, recovery was doubtful, and the surrounding commercial facts showed no real possibility of receipt. The principle applied was that income is chargeable on real income, not hypothetical accrual, even under the mercantile system. Mere continuance of the loan agreements did not by itself establish accrual when the interest was unlikely to be realised. The addition was deleted. Case-Laws Income Tax Thu, 31 Jan 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=182983