https://www.taxtmi.com/caselaws?id=183189 Interest on Government securities under section 8 of the Income-tax Act, 1922 was treated as becoming taxable only when it became due and receivable, not day by day. The Lahore HC reasoned that the purchaser became owner before the interest due date, and the statutory machinery tied deduction, credit, assessment and refund to payment and ownership at the time the interest became receivable. A computed interest element embedded in the purchase price did not create a separate deductible charge against the later interest receipt. The conclusion was that the computed interest was not deductible from the interest actually received. en-us Wed, 06 May 1936 00:00:00 +0530 Wed, 01 Jun 2016 12:17:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183189 Interest on Government securities under section 8 of the Income-tax Act, 1922 was treated as becoming taxable only when it became due and receivable, not day by day. The Lahore HC reasoned that the purchaser became owner before the interest due date, and the statutory machinery tied deduction, credit, assessment and refund to payment and ownership at the time the interest became receivable. A computed interest element embedded in the purchase price did not create a separate deductible charge against the later interest receipt. The conclusion was that the computed interest was not deductible from the interest actually received. Case-Laws Income Tax Wed, 06 May 1936 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183189